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Tenant in Common 1031 Exchanges Explained

Some investors hesitate to perform a 1031 Exchange because the strict 45-day identification requirement that must be met. It can be difficult to identify all replacement properties by the 45th day and it can also be a challenge to locate a backup replacement property of exactly the right type/value needed for a completely deferred exchange.

How does your money roll over in a 1031 exchange?

Real estate investments come in several different shapes and sizes. Whether you’re buying a house, townhouse, condominium, vacant land, strip mall, hotel or apartment building, it is considered a real estate investment by the IRS.

Calculating Depreciation

Last week we introduced depreciation and mentioned that a 1031 exchange could save you from the immediate cost of depreciation recapture. To fully understand depreciation, including how the year you purchased the property and various depreciation methods factor into your calculations, consult your tax advisor or IRS publication 946. Today, we'd like to look at some additional basics you should know.

Depreciation: What is it? A Blessing & A Curse

It isn't fun to consider how your real estate properties have deteriorated as they face another year of use by tenants, harsh weather conditions, aging building materials, and other factors. However, when that deterioration results in tax deductions and increased cash flow, then maybe it isn't so bad. When it comes to accounting books and tax returns, this deterioration is known as depreciation.

Understanding DST 1031 Exchanges, Part 3

DSTs Reduce TIC Drawbacks

During the 1990s and early 2000s, most 1031 exchange investors who exchanged properties for partial ownership in large, high-valued replacement properties participated in the Tenant-In-Common (TIC) structure.

AUTHORIZED PARTNER

CrowdPay is an FDIC insured bank account that you can use to purchase investment opportunities. You fund your CrowdPay account by ACH or wire transfer. All future dividends, interest payments, as well as revenue sharing payments will be placed into your CrowdPay account. You have the option to transfer funds into the account, withdraw funds from the account, or purchase additional assets at any time.

The account is held by GoldStar Trust Company, a trust only branch of Happy State Bank, and cash that accumulates in your new CrowdPay account is FDIC insured. Please follow the below link for additional important information regarding your CrowdPay account.

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