How to Do A Successful 1031 Exchange
A 1031 Exchange allows property owners to defer their capital gains tax by exchanging their property for “like-kind real estate” (also known as replacement property) with the proceeds from their sale.
A 1031 Exchange allows property owners to defer their capital gains tax by exchanging their property for “like-kind real estate” (also known as replacement property) with the proceeds from their sale.
When it comes to finding the right investments and meeting deadlines to maintain the eligibility of your exchange, it is absolutely crucial to find an advisor that has the drive to get to know you, and provide suitable investment opportunities.
There are a number of advantages of Delaware Statutory Trust investments for 1031 Exchanges. Diversification, lower minimum investments, financing access are just a few.
Why should an investor 1031 exchange into a 3.5% projected cash flow multifamily DST instead of the seemingly more attractive 5% net lease DST featuring a FedEx, Tractor Supply, Dollar General, Burger King, or CVS Pharmacy? The answer comes down to the benefits of real estate depreciation and tax equivalent yield.
For investors selling a property with a large amount of debt as a percentage of total sales price, one type of investment structure that can be especially beneficial.
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Triple Net Property leases, commonly known as NNN leases or net-net-net investments, are a well-known favorite amongst experienced investors. However, many of the significant benefits that make NNN leases so favorable also have the potential to be a downside.
Delaware Statutory Trusts (DSTs) can help you diversify your portfolio, but they can also provide suitable solutions to a host of other challenges you might face in the real estate market, specifically within the parameters of a 1031 exchange.
In the farming industry, a 1031 real estate exchange is a common strategy to allow a farmer “defer” paying the capital gains and/or ordinary income taxes on an investment property when it is sold, as long as the “like-kind property” is purchased with the profit gained by the sale of the first property.
When a taxpayer does a “tax-free exchange” of California real estate for real estate in some other state, California form 3840 is required to be filed each year and when the replacement property is sold.
This investment vehicle can help farmers build wealth. The section 1031 exchange law, enacted in 1921, has been helping farmers and landowners build wealth and keep cash flow in their operation for decades.
A 1031 exchange only applies to investment properties -- or does it? If you sell an investment property, you can get hit with a large tax bill, especially if you sell it for a large profit. However, a 1031 exchange allows you to use the proceeds from that investment property to buy another and defer any tax liability in the process.