Owners of appreciated real estate face tough decisions: (1) hold onto a property that may not be working for them anymore so they don’t have to pay the high tax liabilities associated with selling; (2) sell and pay the capital gains, 25% depreciation recapture and possibly the 3.8% Net Investment Income Tax; or (3) complete a 1031 exchange, defer the gain and reinvest all proceeds into more desirable replacement property. For those investors exchanging, they can buy traditional fee interest in property or an investment vehicle known as a Delaware Statutory Trust (DST). Regardless, all of the 1031 exchange rules and timelines remain the sale. The DST is simply a different replacement property option.Read More
A tax-deferred exchange allows you to defer federal capital gain taxes when like-kind real property within the exchange timeline. While most states with an income tax regime recognize a 1031 exchange and allow you to defer the state gain as well as the federal gain there is one state that does not. This Tuesday Tip looks at state requirements in a 1031 exchange.Read More
When you think of a tax-deferred exchange, you often think of like-kind exchanges and what qualifies
as like-kind. This More, More Monday we will discuss 30 year leases, an often overlooked property that qualifies as like-kind in a 1031 exchange.
We have discussed many of the benefits of a tax-deferred exchange but what can a 1031 exchange really do for you? This Friday Free for All will provide an example of the true power of a 1031 tax-deferred exchange. Let’s look at a specific scenario and how a 1031 exchange can benefit the seller.Read More
This Friday Free for All we will go back to basics. We will look at 1031 tax-deferred exchanges, what they are, their benefits, how they work and the rules involved.Read More
One of the many benefits of a tax-deferred exchange is the ability to defer capital gains taxes when selling and acquiring like-kind real property. This Friday Free for All discusses ways to maximize your tax deferral by minimizing taxable “boot.”Read More
We all know that a tax-deferred exchange allows you to defer capital gain taxes but there is another strategy to help you get a great return on investment and tap into your equity. Today’s Thankful Thursday is about refinancing to pull equity out of your replacement property.Read More
I have started to think about estate planning. I have two children and I want to make sure they are taken care of. One of the many (great!) benefits I have learned about 1031 exchanges is that they are a great estate preservation tool. Today's Wealth Building Wednesday is about using 1031s to build and preserve wealth.Read More
The Marcellus Shale is a rock formation lying 5,000 to 9,000 feet below the surface, stretching from New York State through West Virginia of which sixty percent is located in Pennsylvania. Marcellus Shale exploration and drilling has overtaken the northern to southwestern part of Pennsylvania, and with it comes many new challenges and opportunities for the landowners in this area, and 1031 exchanges may help.
Included in The Health Care and Education Reconciliation Act of 2010, signed into law on March 30, 2010, is an "Unearned Income Medicare Contribution" that impose a 3.8% tax on all unearned income, including any profit on the sale of real estate. It is not a real estate sales tax or national transfer tax but depending on your income level, the new tax may apply to you. The new tax applies to all unearned income you have regardless of whether or not it is related to real estate.