When several owners own separate shares of a real property, and each share can be sold or transferred at will. For example, if a 100,000 sq. ft. office building is owned by 15 people they are considered to be tenants…
Tax deferral means paying capital gains tax due today at a later date. 1031 exchanges are used to defer the payment of capital gains tax.
The three-property rule allows investors to identify up to three potential replacement properties for the property being sold, regardless of their market value. Only one of the three replacements must be purchased.
A TIC, or tenancy in common investment, is real estate that is co-owned with other investors. By default, the ownership percentage of a TIC is proportional, with each investor directly owning an equal percentage of the property. Learn more about TIC…
Triple net leased property does not include any ‘extras’ in the monthly rent. A NNN lease is oftentimes used for free standing property that is occupied by a single tenant, such as a bank building, fast food outlet, or a…
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.