Section 1031 exchange proceeds must be invested in direct property ownership, not in a real estate fund structured as a partnership. Delaware Statutory Trusts can be structured to allow Section 1031 investors to invest in the same property as a real estate fund, but to qualify for Section 1031 exchange, DSTS must comply with signfiicant operational restrictions and remove the flexibility that generally exists with a real estate fund.
Read MoreSection 1031 exchange proceeds must be invested in direct property ownership, not in a real estate fund structured as a partnership. Although a TIC structure is a possible alternative, due to a combination of tax law and mortgage lender requirements, TICs are an alternative only under limited circumstances require careful structuring to comply with both tax and securities laws.
Read MoreThe Inflation Reducton Act recently passed by the Senate included a last-minute chanage retaining the current tax treatment of carried interests.
Read MoreThe American Families Plan proposes ending the ability for investors to use Section 1031 to defer taxes on gains greater than $500,000. Business owners and real estate investors can take action now to minimize the tax impact of this and other proposed tax changes.
Read MoreThe American Families Plan would eliminate the stepped-up basis for many heirs.
Read MoreThe American Families Plan proposes the elimination of the long-term capital gains rate. If passed as proposed, these tax changes are likely to reduce transaction volume and shift real estate investment focus from long-term gains to short-term returns.
Read MoreThe real estate investment strategy of doing successive Section 1031 exchanges and planning for a stepped up basis upon death may no longer be viable if the Biden tax plan becomes law.
Read MoreRevenue Procedure 2020-34 provides a safe harbor for loan forbearances, lease modifications, and additional capital contributions needed due to the COVID-19 pandemic.
Read MoreOn September 24, 2019, the IRS issued Revenue Procedure 2019-38, which provides a safe harbor under which income from rental real estate will be qualified business income under Section 199A.
Read MoreOn July 15, 2019, SEC and NAASA recently released a Joint Summary of securities law concerns for Qualified Opportunity Zone Funds. Although these funds can provide significant tax benefits, fund sponsors must be careful to comply with securities laws when selling them to investors.
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