Owing more in tax than what you received from sale.
You may wonder how some people end up with a tax bill that is larger than the amount of cash they take home from the sale of their property. Or maybe this is your current circumstance and you don’t know how you got here. We’d like to take a moment to offer an explanation of how this is possible so that you don’t find yourself in this unfortunate circumstance.
It is not too hard to argue that the more money you invest, the more money you can make. So if you could defer paying taxes and use that money to increase the amount of your next investment, wouldn’t you do it? Of course you would at least look into it. Let us answer some of the common questions about 1031 Exchanges-DST's and REIT's.
Today we are highlighting two Real Estate Investment Trusts (“REITs”) as examples of investment funds that have been publicly involved in the student housing industry for more than a decade. These funds have experienced sustained success with continued growth by investing solely in student housing communities.
It’s great to have high occupancy on your rental properties, but if your occupants are not stable credit-rated tenants and do not have means to pay rent, then high occupancy doesn’t equate to high investment value.