1031 Exchange Rules

There are several general rules that apply to all 1031 exchanges:

1031 exchange rules

The 1031 like-kind tax deferred exchange originates from Section 1031 of the U.S. Internal Revenue Code. This section of the IRS Code allows real estate investors to defer the payment of capital gains tax that would normally be due when real estate is sold (or relinquished) by purchasing another like-kind replacement property. 1031 exchanges are also known as Starker Exchanges,…

Real Estate Investing With The Lessons of 2020

2020 has drawn a laser focus on one very important fact – we must plan for the unexpected.

2020 city scape representing real estate investing with the lessons of 2020

If nothing else, this year has absolutely drawn a laser focus on one very important fact – we must plan for the unexpected.  The extreme circumstances and resulting market volatility which has occurred since March 2020 is unlike anything our investors have experienced in their lifetimes.  With uncertainty coupled with market volatility comes a lot of emotion – primarily fear. …

Triple Net Lease Explained

The three general categories of commercial leases are gross, modified gross, and triple net (or NNN)

triple net lease property example

What Is A Triple Net Lease Property? Updated July 23, 2024 In commercial real estate no two leases are the same. The three general categories of commercial leases are gross, modified gross, and triple net (or NNN). But within these three categories leases can and do vary from one to another. Sometimes the terms and conditions of a lease are…

Qualified Intermediaries and Their Role in the 1031 Exchange Process

Qualified Intermediaries are independent third parties acting on behalf of the exchanger.

a bridge figuratively represents qualified intermediaries

Article Updated July 25, 2024 The IRS requires that money generated from the sale of the relinquished property must be held by a qualified intermediary until the replacement property is purchased.  If the investor touches or in any way controls funds used for a 1031 exchange, the exchange will be disallowed by the IRS and tax on the capital gains…

Delaware Statutory Trust Vs Tenants in Common

Delaware Statutory Trusts Vs Tenancy-in-Common Property Investments

delaware statutory trust article header

Investors analyzing passive real estate investments are frequently faced with making the choice between investing in a Delaware Statutory Trust (DST) or purchasing part of a tenant in common property (TIC). This situation often occurs on the acquisition or replacement side of a like-kind 1031 tax deferred exchange. Real estate investors look for passive replacement property because – while they…

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