Posts in Tax Law
How a DST Can Enable 1031 Investors To Invest in Real Estate with a Fund

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.

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Why Section 1031 Proceeds Can't Be Invested in a Real Estate Fund and How a TIC Can Be Used Instead

Section 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.

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American Families Plan and Real Estate Investments – 1031 Exchanges

The 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.

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American Families Plan and Real Estate Investments–Capital Gains and Carried Interests

The 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.

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Revenue Procedure 2019-38 and the Rental Real Estate Safe Harbor under Section 199A

On 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.

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How Struggling Orchestras are Like Qualified Opportunity Zone Funds

On 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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