Point Acquisitions Blog
If you’re considering a 1031 exchange, you may wonder if exchanging a residential property for commercial real estate is possible. The answer is yes, with some caveats. Here’s what you need to know when it comes to converting 1031 exchange residential to commercial and how it works. What is a 1031 Exchange? First off, let’s review what a 1031 exchange is. A 1031 exchange allows an investor to defer capital gains taxes when selling an investment property and buying another one of equal or greater value; even up to double with the 1031 exchange 200% rule. This means that rather…
Read More
Entering a 1031 exchange can be a smooth and efficient process with the help of a qualified intermediary (QI). These experts are essential for maintaining the tax-deferred status of a property exchange, ensuring that all steps from the initial sale to the purchase of replacement property comply with the Internal Revenue Code. Their role in managing the exchange funds and overseeing the transaction is important for any investor looking to leverage this powerful tax strategy. Here, we’ll outline the role of a 1031 exchange qualified intermediary and why their expertise is critical in a 1031 exchange. Key Takeaways What is…
Read More
Are you looking for a way to defer your capital gains taxes? 1031 exchange installment sales is a strategy that can be deployed. This tax-deferring strategy is a great way to maximize your profits by allowing you to shift the payment of capital gains taxes from one investment property or business to another replacement property. Knowing how 1031 exchanges work can aid you in saving on your taxes on commercial real estate sales as well as potentially benefit you lucratively when investing in real estate or running a business. Let’s dive into the details! What Is a 1031 Exchange? A…
Read More
In commercial real estate, you may have come across RSF and USF, but what does RSF stand for? And what exactly is the difference between that and USF? a property’s size can be evaluated in two major ways: by its usable square footage (USF) or rentable square footage (RSF). Generally, this applies more to office and retail properties with multiple tenants than multifamily or industrial properties. In this blog we will explore the differences between rsf vs usf. What Does RSF Mean in Commercial Real Estate? What is RSF in real estate? RSF, or rentable square feet, is an important…
Read More
To understand how a 1031 exchange works, it is important first to understand the rules and regulations that come with it. How often can you do a 1031 exchange? What happens if you run out of time in a 1031 exchange? In this blog post, we’ll go over everything you need to know about the 1031 exchange so that you can make the most informed decision. What is a 1031 Exchange? A 1031 exchange is a section of the United States tax code that allows taxpayers to defer taxes on selling real estate or other investments by reinvesting the proceeds…
Read More
Investors have looked to 1031 Exchanges to defer their capital gain taxes for years. However, today we can look deeper into opportunity zone vs 1031 exchange and find unique opportunities in Opportunity Zones that also prove hugely beneficial for those considering investing through the traditional route. This article will cover how taking advantage of investing in Opportunity Zones may open up more options than ever – including key differences you should be aware of first! Understanding taxes on commercial real estate sales can open many doors! How do Opportunity Zone funds work? An Opportunity Zone is an economically-distressed community where…
Read More
The 1031 exchange is a great way to invest in property, but there are some rules you need to follow to qualify for the capital gains tax break. In this blog post, we will answer all your questions about how much do you have to reinvest in the 1031 exchange as well as other 1031 exchanges so that you can take advantage of this opportunity! What Is a 1031 Exchange? A 1031 exchange is a way to defer capital gains taxes when selling investment property. This type of exchange allows you to sell an existing property and buy a like-kind…
Read More
What qualifies as a 1031 exchange? The 1031 exchange 200% rule is important for investors who want to defer capital gains taxes on property sales. The proceeds of a business or investment property sale can be reinvested into like-kind replacement properties. This blog post will discuss the 1031 exchange 200% rule and why it is so important for investors! How does the 200% rule work? The 1031 exchange 200% Rule allows investors to defer paying tax on commercial real estate sales by reinvesting those proceeds into another like-kind asset. 1031 exchange basic rules are: To qualify for a 1031 exchange,…
Read More
Many real estate investors don’t know this, but you can take cash out of your 1031 exchange. However, a few conditions must be met for this to happen. This post will answer the question, can I take cash out of my 1031 exchange and how Point Acquisitions can help you! 1031 Exchange: Quick review To understand cash out 1031 exchange, it’s important to review what a 1031 exchange is. The idea behind a 1031 exchange is that it allows investors to defer paying capital gains tax on the sale of their investment property. In short, a 1031 exchange is when…
Read More
Diversifying your investment portfolio is important, and real estate can be a great way to do it. But if you’re worried about having enough money to buy an investment property on your own, consider using a tenants in common 1031 exchange agreement. This will let you invest in property with other people while still allowing property owners to defer capital gain taxes through 1031 exchanges. What Is the Tenants-in-Common Structure? The tenants-in-common (TIC) structure is a type of co-ownership in which each tenant owns a share of the property. The tenants can be individuals, corporations, or other entities and hold…
Read More