Real estate investors may have at some point needed to use an IRS 1031 exchange to defer significant tax liability by using the sale proceeds from an investment asset deal to acquire a new one. In such a case, they'll need a 1031 accommodator. Choosing an exchange accommodator can be a daunting task as the IRS has specific rules you must follow, and a slight mistake can cause you to pay the tax...
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As a real estate investor, it's hard to miss the phrase "1031 exchange."It remains one of the greatest gifts in capital protection and tax shielding for serial investors. But the name's not very telling, is it? In simple terms, a 1031 exchange allows equity to roll over from one real estate investment into another, deferring certain tax obligations. Any investor seeking to build wealth over time would be...
As a real estate investor, you've no doubt heard of 1031 exchanges. The name originates from Section 1031 of the U.S. Internal Revenue Code, and for the past hundred years, has helped investors defer tax in like-kind transactions of investment properties. Investors can strategically use the exchange to scale and optimize their portfolios and advance toward financial freedom. To make a 1031 exchange...
If you're thinking about how to get the highest return on your 500K investment here's the first thing: don't put it all in the same place! When you have $500,000 to invest, you should diversify your portfolio by investing in several sectors of the economy. That way you will have various returns from various places. Investing a half-million dollars may not be something that anyone can do, but if you...
When it comes to investing in a 1031 Exchange Tenants in Common, an informed choice can make all the difference. Getting the basics right can save you a lot of money, taxes, and even maintenance responsibilities. Often used for tax purposes, 1031 Exchanges are beneficial for a mortgage and in heirship too. But is it worth it to invest your hard earned money in a Tenants in Common ownership? How can you...
When renting property, a lease is a formal contract that lays out the responsibilities of the tenant and property owner. It details the length of ownership, due date of rent, and who’s responsible for what in the maintenance of the property. In this blog, we’ll cover the different types of lease available, including: Full service leases Net leases We’ll briefly look at the prominent features...
Are you interested in getting started in commercial real estate but want an investment where you can be hands-off and earn a passive income? Triple net lease properties might be the perfect segway from residential to commercial properties. NNN leases are typically large franchise stores, such as Starbucks, Walgreens, and 7-Eleven, that have a stable and guaranteed cap rate every year. Triple net leases...
Building your wealth while maintaining a personal life can be a huge challenge. For this reason alone, investing in passive income properties has become increasingly attractive to investors. It's no secret that many wealthy people hold multiple investment properties to create a steady cash flow that supplements their regular monthly income. There are various options in the real estate market for both the...
As you’re probably looking to maximize profits from your investment property, you should learn how to minimize your tax liability. If you took advantage of the depreciation method for tax deductions, know that the IRS will come knocking. The IRS will want to get some portion of that money back through depreciation recapture. This isn’t helping your total tax bill at all! Luckily, there are some tax...
Successful real estate investors looking to diversify their portfolios buy and sell properties all the time. However, real estate transactions are typically accompanied by a myriad of fees, costs, and taxes that can diminish profit margins. A 1031 exchange allows investors to dispense with certain real property and acquire another of a similar commercial nature. These are referred to as the...