Where can I do a 1031 exchange with multiple properties?
Areas where this method is popular include states such as California, Hawaii, New York, and Washington state. Investor A owns an investment property in Seattle and has rented it consistently over the past 10 years.
What are the benefits of buying multiple properties?
There are many benefits to selling one valuable property and purchasing multiple. The first is that you are reducing risk. If the neighborhood or metro area the property is in goes south, you are relying on a single building for income. During the great recession many investors who held properties in one area were hard-hit by the downturn.
Can a married couple have more than one property?
Married couples can only have one principal private residence. If a property is sold which has been the principal private residence and was actually lived in at any time, the last 18 months of ownership are treated as private residence. If the property has grounds of over 0.5 hectares, a chargeable gain may arise on the land.
How is a trust used in estate planning?
A trust is a legal vehicle used to pass assets, in which trustees hold title to the property for the benefit of one or more beneficiaries. This arrangement is widely used as a tool to disguise owner names, to help with estate planning, or to allow a group of people to invest in a property without getting taxed differently.
Do you have to put your property in a trust?
Creating a trust should not be looked on as an simple solution, however. It is a formal legal arrangement and will mean that the property is no longer yours, but instead belongs to trustees.
What happens if there are more than two beneficiaries in a trust?
But things get touchy when everyone has different ideas about what they want to do with the property. If there are more than two beneficiaries, then it gets even more complicated. One person might have an emotional attachment to the property but not enough funds to buy the other parties out.
Can a real estate trust be a limited liability company?
When buying an investment property, you have the option of purchasing it in your own name or purchasing it under the name of another entity, such as a real estate trust (also called a “realty trust”) or a limited liability company (LLC).