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September 20th, 2017 by FGG
HISTORY OF SECTION 1031 OF THE INTERNAL REVENUE CODE

Section 1031 of the Internal Revenue Code ("IRC") has a very long and somewhat complicated history dating all the way back to 1921.  The first income tax code was adopted by the United States Congress in 1918 as part of...

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August 30th, 2017 by Paul
REAL ESTATE EXIT STRATEGY: IMPORTANT DIFFERENCES IN CALCULATING TAX CONSEQUENCES WHEN SELLING RENTAL PROPERTIES

Too often we receive calls from rental property owners who have neglected to complete critical steps to execute a successful real estate exit strategy. Regretfully, we encounter many investors who have not fully considered the tax consequences of selling their rental properties....

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August 16th, 2017 by Paul
1031 EXCHANGE ISSUES WITH REITs

    Real Estate Investment Trusts or REITs are one of the most popular forms of real estate investment. REITs have some similarities to DSTs since both are structured as a trust and have in-place management and other features that can cause...

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August 4th, 2017 by FGG
DSTs versus TICs: 1031 DST EXCHANGES & TIC INVESTMENTS

Many investors have had bad experiences with TIC investments and are interested in understanding why DSTs may be better. In this blog, we will provide some basic education on the key differences and relative benefits of TIC investments and 1031 DST...

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July 25th, 2017 by Paul
1031 EXCHANGE PROPERTIES - BASIC RULES

1031 Exchange Properties GuideThe origin of 1031 Exchanges dates to 1921 and the related provisions which permit tax deferrals have been extensively used by many taxpayers to save taxes. While specific details have evolved over time, there are basic rules...

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July 13th, 2017 by Paul
FGG 1031 - ACQUIRING TRIPLE NET (NNN) PROPERTIES IN A DST STRUCTURE

Triple net leased properties (NNN) are those where the tenant is responsible for paying for all taxes, insurance, maintenance for the property (the three nets). Triple net properties remain one of the most popular asset classes for real estate investors who...

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June 28th, 2017 by Paul
HOW DO SALES COSTS OF DSTs COMPARE WITH TRADITIONAL REAL ESTATE?

A common question that investors ask is “what are the sales costs associated with investing in DSTs as compared to traditional real estate?”    Selling costs for DSTs (sometimes called “load”) are expressed as a percentage of the total cash or equity...

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June 22nd, 2017 by FGG
1031 EXCHANGE RULES TO COMPLETE A 100% TAX FREE DEFERRAL

Many investors who are planning to save taxes via a 1031 Exchange fail to fully follow IRS guidelines and end up with tax liabilities that could be avoided. Let’s review the basic 1031 Exchange rules to understand the steps that...

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May 24th, 2017 by FGG
HOW DSTs CAN PREVENT A FAILED 1031 EXCHANGE

I received a call from a current client who I will refer to as “Tom” at 4 pm on Good Friday afternoon while I was driving up to spend time skiing with friends at Lake Tahoe the following day. Tom...

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April 14th, 2017 by Paul
THE POWER OF DIVERSIFICATION

With Easter weekend coming up, I am reminded about the wise old investment adage of not putting all of one’s eggs into one basket. Due to high up-front investments required to acquire quality income properties, we often see investors committing...

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