california: What is TIC investment property?
- 06/04/08 05:42 AM
Investing in real estate was probably one of the best investment decisions of your life. Now, current vacancies, demanding tenants, and minimal income are several issues that are compelling many investors to seriously consider other alternatives. A TIC investment is a form of property ownership where multiple investors pool their funds to own an undivided interest in real estate. As a TIC owner, an investor has an undivided fractional interest in one property and shares in a portion of the rental income, costs and deductions, liabilities, and asset appreciation (if any). Each TIC owner receives a separate property deed and title … (0 comments)
california: Related Party Transaction - 1031 Exchange
- 05/07/08 09:12 AM
If you were to exchange your property utilizing the benefits of IRC Section 1031, you can defer the tax on the gain, allowing reinvestment of all your equity in to one or several investment properties. However, great care must be taken when investors tries to complete their exchange by either selling or buying to a related family party. Under IRS's definition, related parties include, but not limited to, immediate family members, such as brothers, sisters, spouses, ancestors and lineal descendents. Related parties do not include stepparents, uncles, aunts, in-laws, cousins, nephews, nieces and ex-spouses. A corporation, limited liability company or partnership … (1 comments)
california: What is a Business exchange?
- 04/10/08 11:14 AM
BUSINESS EXCHANGE: If a owner of a business seeks to dispose of the business, doing so in Section 1031 exchange can result in significant tax savings. The business owner may want to dispose of one business in one metropolitan market in order to focus on another metropolitan market. Business types that may be eligible for 1031 exchange are; distributorships and franchises, including cable televisions, beer distributorships, restaurant franchises, gas station franchises, laundry franchises, and Professional services practices are just a few. The exchange must be broken down into individual exchanges by category of "like-kind" assets. For example, the value of the … (0 comments)
california: What is a Reverse exchange?
- 04/10/08 11:10 AM
REVERSE EXCHANGE: The reverse exchange is a specialized exchange arising from a situation in which an exchanger must acquire the replacement property prior to selling their relinquished property. Since it is impossible to exchange properties when you own both properties at the same time, a reverse exchange is required if the replacement (purchase) property escrow must close before the relinquished (sale) property escrow closes. Types of Reverse Exchange Transactions Type A: The Intermediary assigns into the purchase contract and takes title to the replacement property. The exchanger has 180 days from close of escrow on the replacement property to sell the … (0 comments)
california: What is a Delayed Exchange?
- 04/10/08 05:14 AM
DELAYED EXCHANGE: As an investor in real estate, you understand how important it is to preserve your wealth and assets. If your investment property has appreciated in value or you have depreciated the property, a sale would require the payment of tax on the capital gain of up to 30% or more (combined federal and state). However, if you were to exchange your property utilizing the benefits of IRC Section 1031, you can defer the tax on the gain, allowing reinvestment of all your equity. The 1031 Tax Deferred exchange offers great flexibility to the investor. You may exchange one property … (0 comments)
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Investing in real estate was probably one of the best investment decisions of your life. Now, current vacancies, demanding tenants, and minimal income are several issues that are compelling many investors to seriously consider other alternatives.;)
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