A 1031 Exchanger, in order to effect a completely tax-deferred exchange, must 1. Replace all the Equity (cash) he receives as sales proceeds AND 2. Replace all the debt he paid off as part of his sale.
This month, we closed a 1033 Exchange for a client by purchasing 6 Net Leased Properties in multiple states for a total of $33 million. This article explores the 1033 Exchange and how it differs from the 1031 that you may be more familiar with.
There sure is a steady supply of “Crazy New California Laws” coming our way. This month, I’ll introduce the concept of “regulatory creep.” We’ll look at exchanging into real estate out of state as a way to seek superior growth and income potential again.
This month, we’ll discuss using Zero Coupon Properties in more traditional exchanges – as a way to cover debt requirements while buying exactly the property you want.
This article will stretch across 2 months, and explores highly-Leveraged “Zero Coupon” offerings as a great way to address 1031 Exchange issues caused by debt replacement requirements. This month, I’ll discuss a client who needed to buy $10 million of property with $1.5 million of equity – in order to defer (potentially forever) over $4 million of taxes.
This month, we’re going “back to basics:” How investors can sell investment property and defer taxes (potentially forever) with a procedure called a 1031 Exchange.
Many real estate investors sell their properties for sizable profits but encounter an unpleasant surprise when they file their taxes the following year. Capital Gains, Accumulated Depreciation, State and “Obamacare” taxes all add up to take a sizeable bite from their profits.
Many of my readers are familiar with the IRS Section 121 Exclusion that allows married couples a $500,000 Capital Gains exemption ($250,000 for unmarried homeowners) on the sale of their personal residence.
Hate the loan application process, but need a new loan to fulfill your 1031 Exchange requirements? Partial Interest properties come with turn-key debt that can make your replacement property purchasing process a lot simpler.
Since 2001, my investors have purchased over 545 partial interest properties – including DSTs. Once an investor purchases the property; what then? Does it sell sometime in the future? When? This month, my article walks us all through the plans and the process.
Most of my clients are buying income producing real estate and, at the same time, buying what the IRS calls more depreciable basis that can better defer (potentially forever) taxes on their real estate income.
Sometimes meeting leverage requirements in a 1031 Exchange can be challenging. This month, I’ll talk about how we can, through a “combo exchange” mix higher and lower-leveraged properties together to meet IRS requirements and achieve our clients’ goals.
