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  • 1031 Exchanges Involving Foreign Property 

    1031 Exchanges Involving Foreign Property 

    1031 Exchanges enable Exchangers to defer Capital Gains taxes by reinvesting the proceeds from selling an investment or business use property into another. It’s important to understand the distinct rules for domestic and foreign properties: you can exchange a U.S. property for another U.S. property or a foreign property for another foreign property, but you cannot exchange a U.S. property for a foreign property, or visa versa. Exchangers should carefully plan and educate themselves on the rules and regulations of 1031 Exchanges to ensure they will retain tax deferral benefits. 
     
    Do US Taxes Apply to Foreign Real Estate?
    Prior to discussing the considerations for 1031 Exchanges involving foreign property, it is important to understand how United States taxes apply to foreign property. If a US taxpayer, or taxpaying entity, owes property outside of the United States, the property or income generated from the property is treated largely the same as domestic property, including: 

    Profits from the sale of property for a profit those proceeds would be subject to taxation
    Income generated from the ownership or operation of foreign real estate is taxable income 
    Property owners can deduct qualifying expenses for foreign properties to lower their taxable income
    Property is eligible for depreciation, although foreign commercial property is depreciated over 40 years and foreign residential property is depreciated over 30 years, versus the 39 years and 27.5 years respectively for domestic properties

    In summary, foreign property owned by a taxpaying citizen of the United States is essentially treated the same as domestic property in regard to annual taxes. 
    Do 1031 Exchanges Apply to Property Outside the United States? 
    In a 1031 Exchange, both the Relinquished and Replacement Properties must be like-kind.

  • 1031 Exchanges Involving Foreign Property 

    1031 Exchanges Involving Foreign Property 

    1031 Exchanges enable Exchangers to defer Capital Gains taxes by reinvesting the proceeds from selling an investment or business use property into another. It’s important to understand the distinct rules for domestic and foreign properties: you can exchange a U.S. property for another U.S. property or a foreign property for another foreign property, but you cannot exchange a U.S. property for a foreign property, or visa versa. Exchangers should carefully plan and educate themselves on the rules and regulations of 1031 Exchanges to ensure they will retain tax deferral benefits. 
     
    Do US Taxes Apply to Foreign Real Estate?
    Prior to discussing the considerations for 1031 Exchanges involving foreign property, it is important to understand how United States taxes apply to foreign property. If a US taxpayer, or taxpaying entity, owes property outside of the United States, the property or income generated from the property is treated largely the same as domestic property, including: 

    Profits from the sale of property for a profit those proceeds would be subject to taxation
    Income generated from the ownership or operation of foreign real estate is taxable income 
    Property owners can deduct qualifying expenses for foreign properties to lower their taxable income
    Property is eligible for depreciation, although foreign commercial property is depreciated over 40 years and foreign residential property is depreciated over 30 years, versus the 39 years and 27.5 years respectively for domestic properties

    In summary, foreign property owned by a taxpaying citizen of the United States is essentially treated the same as domestic property in regard to annual taxes. 
    Do 1031 Exchanges Apply to Property Outside the United States? 
    In a 1031 Exchange, both the Relinquished and Replacement Properties must be like-kind.

  • 1031 Exchanges Involving Foreign Property 

    1031 Exchanges Involving Foreign Property 

    1031 Exchanges enable Exchangers to defer Capital Gains taxes by reinvesting the proceeds from selling an investment or business use property into another. It’s important to understand the distinct rules for domestic and foreign properties: you can exchange a U.S. property for another U.S. property or a foreign property for another foreign property, but you cannot exchange a U.S. property for a foreign property, or visa versa. Exchangers should carefully plan and educate themselves on the rules and regulations of 1031 Exchanges to ensure they will retain tax deferral benefits. 
     
    Do US Taxes Apply to Foreign Real Estate?
    Prior to discussing the considerations for 1031 Exchanges involving foreign property, it is important to understand how United States taxes apply to foreign property. If a US taxpayer, or taxpaying entity, owes property outside of the United States, the property or income generated from the property is treated largely the same as domestic property, including: 

    Profits from the sale of property for a profit those proceeds would be subject to taxation
    Income generated from the ownership or operation of foreign real estate is taxable income 
    Property owners can deduct qualifying expenses for foreign properties to lower their taxable income
    Property is eligible for depreciation, although foreign commercial property is depreciated over 40 years and foreign residential property is depreciated over 30 years, versus the 39 years and 27.5 years respectively for domestic properties

    In summary, foreign property owned by a taxpaying citizen of the United States is essentially treated the same as domestic property in regard to annual taxes. 
    Do 1031 Exchanges Apply to Property Outside the United States? 
    In a 1031 Exchange, both the Relinquished and Replacement Properties must be like-kind.

  • 1031 Exchanges Involving Foreign Property 

    1031 Exchanges Involving Foreign Property 

    1031 Exchanges enable Exchangers to defer Capital Gains taxes by reinvesting the proceeds from selling an investment or business use property into another. It’s important to understand the distinct rules for domestic and foreign properties: you can exchange a U.S. property for another U.S. property or a foreign property for another foreign property, but you cannot exchange a U.S. property for a foreign property, or visa versa. Exchangers should carefully plan and educate themselves on the rules and regulations of 1031 Exchanges to ensure they will retain tax deferral benefits. 
     
    Do US Taxes Apply to Foreign Real Estate?
    Prior to discussing the considerations for 1031 Exchanges involving foreign property, it is important to understand how United States taxes apply to foreign property. If a US taxpayer, or taxpaying entity, owes property outside of the United States, the property or income generated from the property is treated largely the same as domestic property, including: 

    Profits from the sale of property for a profit those proceeds would be subject to taxation
    Income generated from the ownership or operation of foreign real estate is taxable income 
    Property owners can deduct qualifying expenses for foreign properties to lower their taxable income
    Property is eligible for depreciation, although foreign commercial property is depreciated over 40 years and foreign residential property is depreciated over 30 years, versus the 39 years and 27.5 years respectively for domestic properties

    In summary, foreign property owned by a taxpaying citizen of the United States is essentially treated the same as domestic property in regard to annual taxes. 
    Do 1031 Exchanges Apply to Property Outside the United States? 
    In a 1031 Exchange, both the Relinquished and Replacement Properties must be like-kind.

  • 1031 Exchanges Involving Foreign Property 

    1031 Exchanges Involving Foreign Property 

    1031 Exchanges enable Exchangers to defer Capital Gains taxes by reinvesting the proceeds from selling an investment or business use property into another. It’s important to understand the distinct rules for domestic and foreign properties: you can exchange a U.S. property for another U.S. property or a foreign property for another foreign property, but you cannot exchange a U.S. property for a foreign property, or visa versa. Exchangers should carefully plan and educate themselves on the rules and regulations of 1031 Exchanges to ensure they will retain tax deferral benefits. 
     
    Do US Taxes Apply to Foreign Real Estate?
    Prior to discussing the considerations for 1031 Exchanges involving foreign property, it is important to understand how United States taxes apply to foreign property. If a US taxpayer, or taxpaying entity, owes property outside of the United States, the property or income generated from the property is treated largely the same as domestic property, including: 

    Profits from the sale of property for a profit those proceeds would be subject to taxation
    Income generated from the ownership or operation of foreign real estate is taxable income 
    Property owners can deduct qualifying expenses for foreign properties to lower their taxable income
    Property is eligible for depreciation, although foreign commercial property is depreciated over 40 years and foreign residential property is depreciated over 30 years, versus the 39 years and 27.5 years respectively for domestic properties

    In summary, foreign property owned by a taxpaying citizen of the United States is essentially treated the same as domestic property in regard to annual taxes. 
    Do 1031 Exchanges Apply to Property Outside the United States? 
    In a 1031 Exchange, both the Relinquished and Replacement Properties must be like-kind.

  • Accruit Boasts Third-Generation 1031 Exchange Professional

    Accruit Boasts Third-Generation 1031 Exchange Professional

    Jillian Rosansky started at Accruit in June 2023 as a Sales Executive. In less than a year, she was promoted to Senior Account Executive. Jillian engages inbound queries, builds brand awareness through individual and company outreach, and leads many educational presentations, such as Accruit’s monthly webinar, which is coming up on

  • Accruit Boasts Third-Generation 1031 Exchange Professional

    Accruit Boasts Third-Generation 1031 Exchange Professional

    Jillian Rosansky started at Accruit in June 2023 as a Sales Executive. In less than a year, she was promoted to Senior Account Executive. Jillian engages inbound queries, builds brand awareness through individual and company outreach, and leads many educational presentations, such as Accruit’s monthly webinar, which is coming up on

  • Accruit Boasts Third-Generation 1031 Exchange Professional

    Accruit Boasts Third-Generation 1031 Exchange Professional

    Jillian Rosansky started at Accruit in June 2023 as a Sales Executive. In less than a year, she was promoted to Senior Account Executive. Jillian engages inbound queries, builds brand awareness through individual and company outreach, and leads many educational presentations, such as Accruit’s monthly webinar, which is coming up on

  • Lesser Known 1031 Exchanges

    Lesser Known 1031 Exchanges

    In the world of 1031 Exchanges, there are a multitude of circumstances that investors find themselves in with property. While traditional, forward 1031 Exchanges are the most common, situations vary to which more nuanced forms of exchanges may need to be deployed. This blog will cover three types of 1031 exchanges that are not as well-known, including, Partial, Multi-Property, and Improvement Exchanges. 
     
    Partial 1031 Exchange 
    What is a Partial 1031 Exchange? Can you do a partial 1031 Exchange? Also known as a split exchange, a partial 1031 Exchange allows the property owner to exchange a portion of the sales proceeds from their Relinquished Property, and keep a portion for themselves, resulting in a partially tax deferred transaction. It is important to understand that tax will need to be paid on any money that is not reinvested into the Replacement Property. For example, if the Relinquished Property was sold for $1 million and the property owner only wants to reinvest $700,000 in a Replacement Property and pocket the $300,000 for a partial 1031 Exchange, they may do so. In keeping the cash, capital gains and other taxes will need to be paid on the $300,000. The $300,000 leftover, un-invested funds are known as info@accruit.com, or live chat with us on our website.  
     
    The material in this blog is presented for informational purposes only. The information presented is not investment, legal, tax or compliance advice. Accruit performs the duties of a Qualified Intermediary, and as such does not offer or sell investments or provide investment, legal, or tax advice.   

  • Lesser Known 1031 Exchanges

    Lesser Known 1031 Exchanges

    In the world of 1031 Exchanges, there are a multitude of circumstances that investors find themselves in with property. While traditional, forward 1031 Exchanges are the most common, situations vary to which more nuanced forms of exchanges may need to be deployed. This blog will cover three types of 1031 exchanges that are not as well-known, including, Partial, Multi-Property, and Improvement Exchanges. 
     
    Partial 1031 Exchange 
    What is a Partial 1031 Exchange? Can you do a partial 1031 Exchange? Also known as a split exchange, a partial 1031 Exchange allows the property owner to exchange a portion of the sales proceeds from their Relinquished Property, and keep a portion for themselves, resulting in a partially tax deferred transaction. It is important to understand that tax will need to be paid on any money that is not reinvested into the Replacement Property. For example, if the Relinquished Property was sold for $1 million and the property owner only wants to reinvest $700,000 in a Replacement Property and pocket the $300,000 for a partial 1031 Exchange, they may do so. In keeping the cash, capital gains and other taxes will need to be paid on the $300,000. The $300,000 leftover, un-invested funds are known as info@accruit.com, or live chat with us on our website.  
     
    The material in this blog is presented for informational purposes only. The information presented is not investment, legal, tax or compliance advice. Accruit performs the duties of a Qualified Intermediary, and as such does not offer or sell investments or provide investment, legal, or tax advice.