The Capital Gains Blog

Posts Tagged ‘exchange’

Question: Are there any tax advantages for the seller of a property, who is not exchanging, in a 1031 exchange?

Answer: No, nobody actually has a tax advantage in a 1031 exchange. The person who is exchanging one property for another similar property (to qualify for the 1031 exchange) is only postponing the taxes on the gain(s).

Highlight sheet scores through March 4

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Question: A 1031 Exchange of a single family dwelling rental into apartments. Good idea? if not how can I make it work

Answer: Not 100% sure, but I think on a 1031 you must buy a similar property. Single family to single family.

Landlord has right to enter property

Q:When does a landlord have the right to enter a rental property? For example, the smoke detector was going off and the renters were away for the weekend. Or the lease says that three adults can live on the property, yet the landlord knows that four adults are now living on the premises. Can a landlord enter the property without the consent of the renters at any time?—Barbara

Junipine Resort Creekhouse

Grubb & Ellis Healthcare REIT II Enters Agreement to Acquire Parkway Medical Center near Cleveland

Grubb & Ellis Healthcare REIT II, Inc. today announced that it has entered into an agreement to acquire Parkway Medical Center, a two-building medical office portfolio totaling approximately 88,000 square feet in the Cleveland suburb of Beachwood. Â The acquisition is subject to customary closing conditions and the satisfaction of other requirements as detailed in the agreement. Â

Question: Selling a property for $50,000. Should I pay down mortgage & 1031 exchange to save taxes, or invest in Mfunds?

My mortgage is $160,000 at 6.625 APR, for 25 more years. I shared my plan with friends, to invest the money. It started an interesting conversation. I have clear title to the lot selling. I plan to stay in my home a minium of two years, possibly longer.

Answer: This is a question for a tax attorney and a financial advisor. With a 1031 you are going to have to make a like kind exchange so you can not use the money tax free to pay down your existing mortgage, you would more then likely have to buy another piece of land or something similar to what you are buying.

I would take the money and invest it something that you are getting a return on because equity in your house does not have a rate of return, it grows at the same rate no matter how much you have in it. If you can find an investment where you are getting a rate of return better then 6.625% then you are going to be ahead. Also the mortgage interest is tax deductible so your effective rate after the tax deduction is somewhere around 4.625%.

You should look into a book called missed fortune by douglas andrew, it has some interesting concpets reguarding this issue.

Grubb & Ellis Healthcare REIT II Meets Ohio’s Minimum Offering

Grubb & Ellis Healthcare REIT II, Inc. today announced that it has received and accepted subscriptions aggregating 2,000,000 shares of its common stock, or $20 million, therefore satisfying the minimum offering amount required by the state of Ohio.

Question: Divorce and Inheritance?

I inherited a property during my marriage; I sold the property under a 1031 exchange. The new asset is listed as sole and separate property. The funds have never been co-mingled but we did receive a distribution which we reported on our income taxes. Is the primary asset safe from community property?

Answer: if its an inheritance u should get to keep it, unless u co mingled the monies. yes i think even if your in a community property state that an inheritance is protected.

CoStar’s Retail News Roundup: Jan. 31 – Feb. 6, 2010

This week in the Retail Roundup, CoStar reports on expansions or new concepts at Starbucks, Meijer and 77kids; closings, cutbacks, bankruptcy, default, receivership or foreclosure news at Home Depot, Movie Gallery and Hollywood Video; acquisition, merger…