January 29, 2021
The 401(k) of real estate: the 1031 like-kind exchange
As with tax deferred retirement accounts, like-kind exchanges allow real estate owners to reinvest their profits from the sale of income producing properties into other similar income producing properties and defer – not dodge – the taxes.

Dan Wagner | Atlanta Agent Magazine |

There is a misconception that Internal Revenue Code Section 1031 like-kind-exchanges are a tool for the rich to dodge real-estate taxes.  This notion twists and contorts the true, progressive goal of the tax code to help middle-class Americans build personal savings and ensure income for the future. In many ways, 1031 like-kind-exchanges are actually analogous with 401(k)s or Roth IRA accounts. 

As with tax deferred retirement accounts, like-kind exchanges allow real estate owners to reinvest their profits from the sale of income producing properties into other similar income producing properties and defer – not dodge – the taxes.  When the owner eventually liquidates the investment, the government collects its rightfully due taxes. 

For example, a widow in Southern California was forced to sell her husband’s auto service business when he passed away.  The real estate portion of the business formed a large percentage of the sale, and by using a like-kind exchange to defer the capital gains, she now receives monthly cash flow from rental income at the replacement properties she purchased.  The subsequent property effectively has become her IRA account, providing her a nest egg to collect retirement income. 

Read Full Article

Recent

ESG: More than a Buzzword in Farmland Investing

ESG: More than a Buzzword in Farmland Investing

“ESG Investing” has gained lots of attention–both good and bad–over the past 5-10 years. What used to be a niche corner of impact investing has become a greater part of the general investing landscape with the behemoths like BlackRock opining on sustainability and offering investors ESG-packaged funds...

Most Popular

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update 10-3-2023 Blue Vault wishes to acknowledge and apologize for the delay in publishing some Q2 2023 NTR Individual Performance Pages (IPPs) as well as the full review. We recently added additional reporting metrics to our IPPs, and that, combined with coverage of all share classes and some additional…
Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update 9-25-2023 Blue Vault has published the Q2 2023 Nontraded BDC Industry Review as well as Individual Performance Report and Limited Operations pages for the following offerings (newly published pages in bold font): Nontraded REITS American Healthcare REIT Q2 2023 Apollo Realty Income Solutions Q2 2023 (limited operations) Ares…

Explore

Blue Vault Logo
Don’t miss alts news
and educational events

Subscribe Now