Proper 1031 exchange documentation doesn’t just help you avoid tax surprises—it’s the key to maximizing depreciation, deductions, and long-term savings. In Part 2 of our series, we explain why even experienced CPAs can miss key details and how EPC’s specialist review ensures your investment delivers its full benefit.
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Many investors think their 1031 exchange is complete once the property closes—but skipping exchange documentation can cost thousands in surprise taxes. This first article in our 3-part series explains what 1031 exchange documentation is, why it matters, and how EPC helps protect your tax savings with a detailed post-closing analysis.
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Heirs inheriting an S Corp with real estate face unique tax challenges. Learn how step-up basis applies to stock, not assets, and the potential tax consequences.
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Investors involved in Delaware Statutory Trusts (DSTs) and 1031 Exchanges face unique tax responsibilities, particularly when investments span multiple states. Ensuring compliance across jurisdictions can be challenging, especially when federal and state tax filing deadlines differ. Multi-State DST Tax Filing Challenges DST investments often span multiple states, resulting in non-resident tax filing obligations in each of…
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Navigating the complex landscape of state tax filing can be daunting for DST investors. However, understanding why you should file in every state where your tangible property is located is critical—not just for compliance, but to protect your deferred tax benefits. Understanding the Filing Requirement In most states with income tax, non-residents are not obligated to…
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For real estate investors considering a 1031 exchange into a Delaware Statutory Trust (DST), understanding the tax implications of DST reserves is crucial. Many investors wonder if these reserves could be classified as "boot," potentially triggering capital gains taxes. In this guide, we’ll clarify why DST reserves generally do not jeopardize the tax-deferred status of a 1031 exchange.
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Benefiting from the journey of a 1031 exchange can be filled with uncertainties and complexities. Real estate investors often grapple with the question: Are they maximizing their tax benefits? A single misstep in the process could potentially lead to tens of thousands of dollars in unnecessary taxes. This is precisely where Exchange Planning Corporation's specialization in 1031 exchanges comes into play, offering a beacon of clarity and expertise in this complex domain. To enhance your understanding and provide a more interactive experience, we've also prepared an accompanying video. This visual guide will walk you through the key concepts and strategies discussed in this blog post, making the complexities of 1031 exchanges more accessible and easier to grasp.
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When navigating a 1031 exchange, real estate investors often face the decision of whether to add cash to the transaction. This strategic move, though frequently overlooked, holds the potential to significantly enhance the tax-saving benefits of the exchange. Let's explore how and why adding cash can be a transformative tactic in your investment strategy.
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Understanding Loan to Value (LTV) in the context of a Delaware Statutory Trust ("DST") 1031 exchange requires consideration of the reserves, when making the right financial moves for investors. Not to worry though, this post is all about clearing the fog. When investing in a DST, the LTV is important because it indicates how much debt is paired with the equity. The higher the LTV, the more debt that is paired with the equity purchased. On the other hand, a lower LTV means an investor pairs less debt with their equity to buy the replacement property. Using a lower LTV can create boot and will generate more taxable income in the future.
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Cost segregation stands as one of the most potent tools for property owners aiming to optimize their tax deductions. At its core, it revolves around accelerating depreciation on specific elements of a property, granting immediate and significant tax benefits. However, these benefits hinge on the presence of a tax liability.
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