1031 Exchanges: Vacation and Second Homes

1031 Exchanges: Vacation and Second Homes

Rev. Proc. 2008-16 Vacation homes or “second homes” offer another opportunity for the 1031 Exchange. Often one of a taxpayer’s best investments has proven to be his vacation home and yet many tax and legal experts have argued against section 1031 when it came time to...
Tax Update: The Drop-and-Swap Gets a Win!

Tax Update: The Drop-and-Swap Gets a Win!

Tax Update: The Drop-and-Swap Gets a Win! The IRS recognizes a partnership as a single entity, a single person. This “person” may exchange real estate, but the individuals who make up the partnership may not exchange their individual shares. This creates a problem...
What the Heck is a Cap Rate?

What the Heck is a Cap Rate?

What the Heck is a Cap Rate? One of the most misunderstood techniques for evaluating an investment is the capitalization rate or “cap rate”. The term “cap rate” is used over and over again to describe the value of investment properties, though...