Overview of Delaware Statutory Trusts Delaware Statutory Trusts are a unique investment vehicle for multiple investors to purchase smaller shares of a real estate investment. They are typically treated as passive investment mechanisms through the use of a property management liaison to handle all of the operational aspects of renting out the property. Recently, these …
Real estate investors are turning to the tax deferral benefits of a 1031 exchange in droves to avoid paying significant depreciation taxes upon the sale of their investment properties. Even bonus depreciation recapture is eligible for 1031 exchanges. This is the investment vehicle of choice when real estate investors plan to sell off a current …
A Sample Calculation of Depreciation Recapture Tax The primary reason why prudent real estate investors use a 1301 exchange is to lower their tax liability in a given year. Essentially, this tax-sheltering mechanism involves an investor exchanging one property for another like-kind property without incurring any tax liability from the exchange, unlike many other investment …
Read moreDepreciation Recapture Example | How to Avoid With the 1031 Exchange
If you sell property that you have been using as rental property, you may have to pay depreciation recapture, which is why you need to account for depreciation of the property each year when you file your taxes. When you sell the property, figuring out how you are going to be taxed on the depreciation …
Read moreDo I Pay Depreciation Recapture on the Sale of Rental Property for Loss?
Owning investment or rental property is a good move. You’ll enjoy a steady influx of cash and build equity as the property increases in value with time. Investors who have rental property also receive tax benefits. For instance, the IRS will allow you to deduct related costs such as property taxes, repairs and mortgage insurance …
Read moreDepreciation Recapture on Installment Sale of Rental Property – What You Need To Know
If you’re like some rental property owners, you’d never heard of the term depreciation recapture or even understand the logic behind it until your first rental goes up for sale. While owning a rental property offers you the benefit of potential steady cash flow, you may be unaware of the range of taxes you are …
Read moreHow to Avoid Depreciation Recapture Tax on Rental Property
Delaware Statutory Trust Rate of Return If you are looking to do a 1031 exchange DST, you’re probably wondering what the typical Delaware Statutory Trust Rate of Return is. The biggest advantage of Delaware Statutory Trusts is that they’re a stable, passive investment. Their yield will be around the same or lower compared to a …
Since many real estate investments are held in an LLC rather than by individuals, there are questions about how to do a 1031 exchange with LLC. Specifically, if you’re part of a larger ownership group, and some members want to do a 1031 exchange and others don’t, what can you do? This guide to the …
Read more1031 Exchange With LLC – What You Need To Know Right Now
Most folks talk about the three terrible T’s of real estate investing – tenants, toilets, and trash. We happen to think there’s more terrible T’s than just three. Termites… Turmoil… Telephone calls… (usually at 3 AM about something that could have waited until the morning) You get the point. Real estate investing is a rewarding …
Read moreWhat is the 1031 Exchange DST? – The Ultimate Guide to Passive Cash Flow Investments
If you’re a Texas real estate investor, you’ve likely been very happy with the result over the past few years. Texas is on fire – the economy is doing well, unemployment is low, and property appreciation is through the roof. All reasons that point to the 1031 exchange in Texas being a great idea. Areas …
Read more1031 Exchange in Texas – Your Guide to Rules, Exchange Companies, Requirements and More
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