Archive for the ‘1031 investments’ Category

Partnerships In Real Estate Investing

Sunday, April 29th, 2012

Co-owning property with someone else or several people is fairly common. For the last 50 years or thereabouts, many have entered into these partnerships to invest their funds in the same piece of real estate. It’s a legal classification that has an effect on tax filings and asset holdings. General partnerships, generally called GPs, and limited partnerships, commonly known as LPs, are common ways that several investors can co-invest in the same property.

These types of partnerships for co-investors offer a number of tax benefits, so many people have entered into them. When a property is invested into by over one individual and the desire is to utilise it in a 1031 exchange, however, the situation can get tricky. This is particularly so if several partners in the real estate that is being sold don’t want interest in the replacement real estate, but need to take their proceeds and invest it separately.

Don’t Lose Tax Deferment in Partnerships

The difference between real and private property is a vital distinction in this kind of situation, because personal property does not qualify for a 1031 exchange. It is the partnership, seen as an honest to goodness single and separate entity, that owns the actual property and distributes money to those who own interest in the partnership itself.

A 1031 exchange demands that the interest in real estate be sold to allow for the purchase of a like kind property, so a partnership causes issues with that, given the way in which the partnership itself is an entity. The partnership owns the property and must be considered the seller, rather than the co-investors being regarded as such.

Partnerships in

If one or two investors want out of the partnership and don’t want to take part in the replacement purchase, the partnership entity that is selling the property will be dissolved before the new property is acquired. Since it is the partnership that owns the property and not the co-investors, this turns a straightforward 1031 exchange into a complex undertaking. Experienced tax advisors are required to maintain the tax deferred quality of the exchange and the property.

Your and can provide you with great tax benefits if you have got the right information and guidance. Visit 1031investmentopportunity.com today to learn more about tax benefits and investment strategies.

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Partnerships In Real Estate Investing

Sunday, April 29th, 2012

Co-owning property with someone else or several people is fairly common. For the last 50 years or thereabouts, many have entered into these partnerships to invest their funds in the same piece of real estate. It’s a legal classification that has an effect on tax filings and asset holdings. General partnerships, generally called GPs, and limited partnerships, commonly known as LPs, are common ways that several investors can co-invest in the same property.

These types of partnerships for co-investors offer a number of tax benefits, so many people have entered into them. When a property is invested into by over one individual and the desire is to utilise it in a 1031 exchange, however, the situation can get tricky. This is particularly so if several partners in the real estate that is being sold don’t want interest in the replacement real estate, but need to take their proceeds and invest it separately.

Don’t Lose Tax Deferment in Partnerships

The difference between real and private property is a vital distinction in this kind of situation, because personal property does not qualify for a 1031 exchange. It is the partnership, seen as an honest to goodness single and separate entity, that owns the actual property and distributes money to those who own interest in the partnership itself.

A 1031 exchange demands that the interest in real estate be sold to allow for the purchase of a like kind property, so a partnership causes issues with that, given the way in which the partnership itself is an entity. The partnership owns the property and must be considered the seller, rather than the co-investors being regarded as such.

Partnerships in

If one or two investors want out of the partnership and don’t want to take part in the replacement purchase, the partnership entity that is selling the property will be dissolved before the new property is acquired. Since it is the partnership that owns the property and not the co-investors, this turns a straightforward 1031 exchange into a complex undertaking. Experienced tax advisors are required to maintain the tax deferred quality of the exchange and the property.

Your and can provide you with great tax benefits if you have got the right information and guidance. Visit 1031investmentopportunity.com today to learn more about tax benefits and investment strategies.

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