1031 Exchange Eligibility and Key Requirements

1031 Exchange Eligibility

Diving into the intricacies of 1031 Exchanges requires a thorough understanding of its requirements, given its role as a strategic tool for deferring taxes on real estate investments. Key to leveraging this tax-deferral mechanism effectively is ensuring that the participating entity is a taxpayer in the United States, encompassing a wide range of entities such […]

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Utilizing DSTs for Remaining 1031 Proceeds (Cash Boot)

Utilizing a Syndicated Replacement Property in a DST Structure for Completing a 1031 Exchange

To defer tax when selling an investment property, investors must adhere to the Internal Revenue Service (IRS) regulations for a like-kind exchange under Section 1031. Even if an active real estate investor has identified a commercial investment property for exchange, a Delaware Statutory Trust (DST) can be instrumental in ensuring the exchange’s success. DSTs Enhance […]

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“Swap and Drop” vs. “Drop and Swap”

Understanding 1031 Exchanges: “Swap and Drop” vs. “Drop and Swap”

Introduction As a savvy real estate investor, you’re well aware of the tax benefits that 1031 exchanges offer. These powerful tools allow you to defer capital gains taxes when selling one investment property and acquiring another like-kind property. However, the intricacies of dealing with partnerships and LLCs can be as complex as navigating a multi-story […]

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How CFPs Drive Success in 1031 Real Estate Exchanges

A Certified Financial Planner (CFP) can play a significant role in a 1031 Real Estate Exchange, which is a strategy used to defer capital gains taxes by exchanging one investment property for another. Here are some key roles a CFP might undertake in this process: Financial Analysis and Planning: They help clients analyze the financial […]

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Understanding the Power of UPREITs in Real Estate Investment

Real estate investment has long been a favored avenue for potential appreciation and steady cash flow. However, as investment goals evolve or specific real estate holdings mature, the prospect of capital gains taxes and depreciation recapture becomes a concern. One strategic solution gaining traction is the Umbrella Partnership Real Estate Investment Trust (UPREIT) option within […]

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