Are you considering a 1031 exchange? If you are a savvy real estate investor and thinking of selling your investment property, chances are 1031 exchange must have crossed your mind. Factually speaking, this 100-year tool involves selling your relinquished property and investing the entire proceeds in a like-kind investment property to defer the taxes on …
A good investment not only fetches a limited share of profit, but it also offers stability. An aware investor should keep exploring different methods of investment and must possess the ability to sustain in any financial circumstances. Planning a stable financial investment certainly doesn’t require a wizard’s skills, but it isn’t that easy either. After all, …
It is not very rare to argue that the more you invest, the more you make. So if you could defer paying taxes and use that money to increase your next investment amount, wouldn’t you do it? Of course, you would at least look into it. Let us answer some questions about 1031 Exchanges– DSTs …
Tenants in Common or TIC, real estate investments, refer to the legal agreement between people who hold a certain percentage share of real estate property. The percentage reserved by each tenant is mentioned explicitly in the Tenancy-in-Common Agreement and is generally proportionate to the size of each tenant’s contribution. The ownership in the case of …
TIC And DST Investments Provide Shared Ownership Opportunities Read More »
A Delaware Statutory Trust (DST) is a real estate trust formed solely for business purposes. DSTs are private governing trusts responsible for buying, managing, administering, and selling real estate properties. DST shares can be purchased as 1031 replacement properties. DSTs have large structures, and a single DST can possess a hundred or more investors. You …
In layman’s language, ‘Boot’ is defined as anything given in addition to. When it comes to 1031 exchanges, Boot is the cash or money saved at the end of the exchange. For example, say you sold your investment property for $500K. Now, to qualify for a 1031 exchange, you must reinvest $500K into another like-kind …
What Should You Do If You Come Across Boot In Your 1031 Exchange? Read More »
TIC (Tenancy In Common) is an agreement of ownership between two or more investors that own a single property. Tenancy in common provides unshared ownership of property for its investors. These are the arrangements under which investment can be made even for a small amount of money. Under Tenants In Common, the ownership shares are …
Think of DSTs as TIC investments. What do you know about TICs? A TIC or Tenancy-In-Common arrangement lets multiple investors own, operate, and share investment properties. Most commercial complexes are owned under TIC ownership. Under a TIC arrangement, investors have an ‘undivided fractional interest’ in the property, which empowers them to dispose of the property …
Section 1031 of IRC, widely known as 1031 exchange, lets investors defer up to 100% capital gains tax on swapping an income-producing asset with a like-kind property. Tax-deferred exchanges provide a unique opportunity to diversify your investment portfolio and defer taxes on real estate sales. What is a 1031 Land Exchange? Any property maintained for …
What Assets Qualify As 1031 Replacement Properties? Read More »
