An Overview of 1031 Exchange Rules & Requirements
What is a 1031 Exchange? A 1031 Exchange is a specialized real estate transaction that allows investors to defer capital gains taxes on the sale of an investment property. By utilizing a 1031 Exchange, investors can defer capital gains that would otherwise be due upon the sale, provided they reinvest the proceeds into another qualifying property. The […]
Using a Tenants in Common (TIC) Structure for a 1031 Exchange
Section 1031 of the Internal Revenue Code allows commercial real estate investors to defer capital gains taxes on the profitable sale of an investment property as long as the proceeds are “exchanged” into another property that is “like kind.” In order to realize the benefits of the 1031 Exchange, the value of the replacement property […]
What are the Tax Benefits of a Commercial Real Estate Investment?
The major benefits of a commercial real estate investment—such as rental income, price appreciation, and portfolio diversification—are widely known to be primary drivers of investment activity. But, these aren’t the only benefits that should be considered. Even if the income and appreciation for a property are relatively limited, there are a number of significant tax […]
Tax Treatment of Real Estate Income
Understand how commercial real estate income is taxed. Explore the treatment of operating income, capital gains, and depreciation recapture to optimize your investment strategy.
Tax Treatment of Commercial Real Estate Income
One of the major benefits of a commercial real estate (CRE) investment is the tax treatment of the income produced by it. But for those not accustomed to the terms and accounting concepts used to describe the tax implications of CRE, the exact mechanics of these benefits can be confusing. To understand how it all […]
What Are The Tax Benefits of Commercial Real Estate Investment?
Discover how commercial real estate investors leverage depreciation and 1031 Exchanges to reduce tax liabilities and maximize returns.
The 1031 Exchange Napkin Test
The profitable sale of an investment property presents a good news/bad news situation for many investors. The good news is that the property was sold for more than the purchase price, which means that the transaction was profitable. But, that same profit (or “gain”) can be accompanied by a big income tax bill on their […]
