1031 Exchange Strategy: Elder Housing?

The housing market in some areas has posted record valuations. California, Nevada, and Idaho among them. You’re thinking about cashing out of your current real estate investments, but what will be your next investment? Although mortgage interest rates are going up, money sitting in a bank account or Certificate of Deposit (CD) barely earns enough each month to buy a latte. Rather than sell your current investments and head to Hawaii, consider investing in a different kind of real estate. You could make more money that you ever dreamed. Or not. The type of senior housing you buy and where you buy it will make the difference between spending large or scraping by. 
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Is It Time To Cash In (Before the 2018 Bubble Bursts?)

Real estate investors try to look ahead. As we near the end of 2018, many are asking, “Is it time to cash in?” Several markets saw a healthy increase in prices over the last several years. If you were fortunate to buy property in the few years after the Great Recession, you may have a lot of equity that could be used to move up to the next level--especially if you take advantage of a 1031 exchange to defer your taxes.   
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​Organization structure in an exchange

Many investment advisors recommend that real estate investments be owned by Limited Liability Companies. This is to create an organization structure and to protect the investors from premises liability. The creation of a Limited Liability Company (LLC), with a separate tax ID number, is generally the creation of a partnership for income tax purposes. The LLC must file a partnership tax return. 
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Understanding Reverse 1031 Exchanges - Do you qualify? (Updated July 2018)

How To Do a Reverse 1031 Exchange
A brief overview of the process of a reverse 1031 exchange

  1. You have a property you want to sell. This is Property A.
  2. Before you sell Property A, you find a new property you want, Property B. The IRS says that the taxpayer may not own both properties at the same time, if they want to do a 1031 exchange.
  3. An qualified intermediary, like 1031x, purchases and holds Property B until you sell the Property A.
  4. Once Property A is sold (within 180 days), Property B is transferred to you and the capital gains are deferred.
 
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Top 5 Answers About 1031 Exchange Rules in 2018

To the relief of many real estate investors, the recent tax reform left the 1031 exchange rules of IRS tax code Section 1031 essentially untouched. The tax reform did however limit the 1031 exchange rules to real estate, allowing you to still implement the benefits of a 1031 exchange as a real estate investor. Before we get started, let's review some basic 1031 exchange rules concepts: 
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1031 Exchange Aircraft (Updated 2018)

2018 Tax Reform limited 1031 Exchanges to Real Estate. This means that personal property aircraft, livestock, equipment, rolling stock and art are NO LONGER ELIGIBLE for exchange.  
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