Capital Gain or Loss

Difference between the acquisition price and the sales price. If a property is sold for more than paid, a capital gain results. If a property is sold for less than originally paid, a capital loss.

Credit Tenant

A credit tenant is tenant that has received an investment grade rating by one of the three major credit agencies; Fitch, Moody’s, or Standard & Poor’s. An investment grade rating is seen as a good sign that the tenant will be able to pay rent in the…

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Capital Gains

Capital gains are the results of a rise in the value of a capital assets (investment or real estate) that gives it a higher worth than the purchase price. Capital gains are not realized until assets are sold. Capital gains…

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Capital Gains Tax

Tax that is applied by the IRS to profits realized from an investment of capital.  Each state also their own rate of taxation in addition to federal taxes.

1031 Exchange Rules

  • Property must be like-kind real estate
  • Real estate must be used for investment or business, and not be considered stock in trade or personal property
  • Property replaced must be of equal or greater value to the property being relinquished
  • Boot must not be received by the seller
  • Title of the relinquished property and the replacement property must be in the same taxpayer name
  • Replacement property must be identified within 45 days of closing on the sale of the relinquished property
  • Replacement property must be purchased within 180 days of closing on the sale of the relinquished property.