Category: Focus February – 20

Emerging Trends for 1031 Investors

Posted on by Sarah

Because of the increased interest in 1031exchanges, we invited a group of industry experts to talk about the trends they’re seeing in the market, including trading into Delaware Statutory Trusts (DSTs) and how to exchange oil and gas. “… you want the diversification …” The first topic out of the gate was umbrella partnership REITs (or UPREITs). An alternative
to 1031 exchanges, UPREITs offer a way for an investor who is looking to liquidate some real estate to defer taxes. You would sell or contribute that property to the REIT. “That REIT gives you operating partnership units, then you can control the liquidity. There are no taxes on that whatsoever until you transfer those operating partnership units to shares of the stock.
Once you transfer that share stock, that’s not real property and you’re going to be taxed there,” explained Jay Dobbs, senior managing partner of
Effective 1031 Planning. “That REIT gives you operating partnership units,
then you can control the liquidity. There are no taxes on that whatsoever until you transfer those operating partnership units to shares of the stock.
Once you transfer that share stock, that’s not real property and you’re going to be taxed there,” explained Jay Dobbs, senior managing partner of Effective 1031 Planning. Click to read more at www.rednews.com.

Investment Intel

Posted on by Sarah

All too often, you hear that commercial real estate is all about who you know, though any real industry expert will tell you what you know
is far more valuable. That’s why REDNews has made it a mission to gather best-in-their-field panelists for our now-monthly summits. Most recently we gathered in Dallas for the Texas Net Lease & 1031 Summit, covering legal and tax updates for tax-deferred transactions, the status of the current net lease market, understanding your lease and credit and emerging trends for 1031 investors which was moderated by Gavin Kam with Net Realty Advisors. In the following pages, we’ll cover some of the highlights and important details gleaned from our panelists and next month you’ll have a recap of current net lease market conditions in Texas also led by Gavin Kam. The effort is being led by the Federation of Exchange Accommodators (FEA), which says it is “heavily promoting taxpayer-friendly legislation,” an umbrella under which 1031 exchanges certainly fall. A 1031 exchange is a vehicle by which an owner can sell an investment property, then acquire another “like-kind” property while deferring capital gains tax. Otherwise, a federal tax of at least 15 percent is applied to your capital gains, along with a 3.8 percent surtax if your net investment income exceeds $200,000 and any state taxes. Click to read more at www.rednews.com.