Author - Robert Boggess

Deferring Tax with 1031 Replacement Properties

To fully defer federal taxes resulting from the sale of investment property (relinquished property), you must meet certain reinvestment requirements of an IRC 1031 Exchange. The requirements for 1031 replacement properties are:Reinvest the net cash proceeds received from the sale of your relinquished property, and Replace the amount of debt paid off on the sale of your relinquished property with an equal or greater amount of new debt on the replacement property. Note: cash may be contributed to the replacement [...]

DST 1031 Exchange Replacement Property Timing Rules

DST 1031 exchange replacement property timing rules are important deadlines. Failing to meet the deadlines can negate your tax-deferred status. 45 Day Identification Window The property owner has 45 calendar days, post-closing of the first property, to identify up to three potential like-kind properties. This can be really difficult because the deals still need to make sense from a cash perspective. This is true especially in today’s market because people tend to overprice their properties when there are low-interest rates, so [...]

Identification Rules for a 1031 Exchange Replacement Property

When using an IRC Section 1031 exchange of like kind property, the seller must identify replacement property within 45 days of the sale. The 1031 exchange replacement property must be unambiguously identified by the exchanger by street address, legal description or distinguishable name. Current rules and regulations impact the number of properties that can be identified as a potential 1031 exchange replacement property. The rules are as follows:Three (3)-Property Rule: A maximum of three properties may be identified without regard [...]

Types of DST 1031 Exchanges

Whenever you sell an investment property and have a gain on that property, you generally are required to pay tax on that gain after the sale closes. The Internal Revenue Code (IRC) Section 1031 provides an exception which allows you to defer the gain on the sale of a property to a more opportune time if you reinvest the funds in a “like-kind” property as part of an IRC Section 1031 Like Kind Exchange, or commonly referred to as [...]

The Delaware Statutory Trust as a Real Estate Investment

Investors who hold highly appreciated real estate assets may be at a stage of their lives when they are seeking more passive investment opportunities. Passive, professionally managed ownership may allow them to concentrate on other opportunities in life that they have always been passionate and now have the time to pursue. Delaware Statutory Trust Passive Investment Characteristics Rather than deal with the Terrible T’s consisting of toilets, trash, and tenants many long-time investors are in search of the Terrific T’s which [...]