The Credit Tenant Loan 1031 exchange strategy focuses on the potential of obtaining the maximum cash out of a real estate transaction. It relies on a 1031 exchange, but the exchange is only a vehicle for providing cash from the sale of the relinquished property. Some property owners want to sell their property, cash-out, and […]
Redeploying Tax Savings From a Conservation Easement to Provide Tax Free Retirement Income
A married couple in their mid-forties approached me to have a financial analysis based on my Strategic Tax Mitigation™ protocol. Their chief concerns included: the lack of strategies they had to reduce their current taxes and to develop a better retirement income program. After the review, I developed a plan to meet the clients’ goals […]
Growing Your Wealth with Tax-deferred Exchanges Via IRC § 1031
Many real estate investors buy property as a long-term wealth-building strategy. They start investing small, then reinvest to grow their portfolio. Investment property provides passive income and may create legacy wealth for investor and their family. Investors buy property as a vehicle to create wealth from cash flow and appreciation, but taxes are also a big […]
Tax-mitigation Strategy for Ordinary Income, a Case Study
Using charitable contributions of a conservation easement, A Charitable Contribution of a Conservation Easement (CE) IRC § 170(h), may be used to mitigate taxes due to ordinary income. IRC § 170 (h) allows users to make contributions for charitable purposes that result in a reduction in tax liability. A CE can occur when a property […]
Deferring Capital Gains Taxes on the Sale of Investment Property
The 1031 exchange can be a powerful wealth-building tool available to taxpayers who have real estate investments. It has been a major part of the successful strategy of many real estate investors. At IREXA, we help you locate the right replacement property, then implement further investment strategies to mitigate your overall tax liability. Since capital gains tax […]
Why Use a 1031 Exchange When You’ve Lost Money on a Real Estate Transaction?
CASE STUDY: Why Use a 1031 Exchange When You’ve Lost Money on a Real Estate Transaction? Changing Tactics in a 1031 Exchange May Save Taxes CLIENT: The client invests as a family limited partnership entity. It originally invested $1,000,000 into a TIC property 10 years ago. The recent sale of the relinquished property resulted in […]
Frequently Asked Questions About Delaware Statutory Trust Beneficial Interests and Your 1031 Exchange
1. What transaction fees are involved from IREXA? All transaction fees are built into each purchase and are paid for by the sponsor. IREXA receives its fees from the sponsor. They include normal closing costs, and costs of securitization. On a 50% leveraged purchase, total fees are approximately 4%-6% of the overall purchase price. 2. […]
Discover New Opportunities from Real Estate Investments with a 1031 Exchange
Defer Tax on Gain You own commercial real estate with all of its rights and responsibilities. Perhaps you want to cash in on the equity you have built up in the last decade or you are through dealing with tenants. You’re ready to create income without having to work; that’s retirement. Some tactics that may […]
Why Use a Delaware Statutory Trust Structure?
A Delaware Statutory Trust (DST) provides an efficient vehicle to benefit from the advantages of a 1031 exchange. The DST structure allows an investor to buy fractional interest in large, institutional quality,* professionally managed commercial real property as individual beneficial owners of the DST. Using a DST as the replacement property combines the tax deferral […]
Options When Members of a Partnership or LLC Want to Cash Out
A partnership or limited liability company (LLC) cash-out 1031 exchange occurs when one or more of the partners or members want to cash-out of the investment property to be sold instead of re-investing all of the proceeds from the sale of the relinquished property into the replacement property. One popular method is a Drop and Swap. Assuming […]
