For Limited Liability Companies (LLCs) owning investment properties, a1031 Exchange allows the deferral of capital gains taxes when exchanging one property for another of like-kind. However, the exchange must be carried out at the entity level—meaning the same LLC must sell the relinquished property and purchase the replacement property. … [Read more...] about 1031 Exchange for an LLC-Owned Property: Rules and Considerations
Why Reinvesting All Your Proceeds in a 1031 Exchange May Not Be Enough to Defer 100% of Your Tax Burden
Most people know that you need to reinvest your sales proceeds from your relinquished property into your replacement property during the course of your 1031 exchange. But many people forget about one of the most important elements of a 1031 exchange: unreplaced debt relief. In this article, we are going to explain the importance of offsetting debt relief during your 1031 … [Read more...] about Why Reinvesting All Your Proceeds in a 1031 Exchange May Not Be Enough to Defer 100% of Your Tax Burden
Video – An Explanation of the Build-to-Suit 1031 Exchange
Why don't we talk about what a build-to-suit exchange is? Let's say that you have a property that doesn't meet your needs any longer. You're constrained at your current location and you’re having zoning issues. So you think to yourself that you’d like to sell this relinquished property, take the money and go up to Rogers, Minnesota, where the land is cheap and plentiful and the … [Read more...] about Video – An Explanation of the Build-to-Suit 1031 Exchange
Can You Use a 1031 Exchange to Buy a Fractional Real Estate Interest?
Yes, you can use a 1031 Exchange to purchase a fractional ownership interest in real estate. However, the exchange must meet specific criteria set by the IRS, which requires the fractional interest to be in a property, not a business entity, and that the replacement property is of equal or greater value. … [Read more...] about Can You Use a 1031 Exchange to Buy a Fractional Real Estate Interest?
95% Rule for a 1031 Exchange: When Does It Apply?
The 95% Rule in a 1031 Exchange allows an investor to identify more than three properties, provided that they acquire properties worth at least 95% of the total value identified. This rule is crucial when investors want flexibility in selecting replacement properties from a broader pool without exceeding the allowed three-property limit. … [Read more...] about 95% Rule for a 1031 Exchange: When Does It Apply?