New Increase in FIRPTA Withhold Rate

FIRPTA Withholding Rules

On December 21, 2015, as part of the Protecting Americans for Tax Hikes of 2015 (the “PATH Act”), President Obama signed into law new provisions that resulted in significant changes to the Foreign Investment in Real Property Tax Act of 1980 (“FIRPTA”) rules regarding federal income taxes for foreign investors owning United State real estate. These changes include increasing the FIRPTA withholding tax rate from 10% to 15% effective for dispositions after February 17,2016. To learn more about the FIRPTA rules, the three exceptions to FIRPTA, and the steps involved with complying with FIRPTA in a 1031 exchange, Read More…

States with the Fastest Job Growth

Research from the University of San Diego & Collateral Analytics

The following 15 states are likely to see the fastest employment gains this year, from 2.1% to 4.0%, all topping the 1.8% national average. Read More…

1031 Basics: What Not to Do in an Exchange

Although tax-deferred exchanges under Section 1031 have become quite common, most people outside of the exchange industry are not familiar with the legal requirements surrounding a successful tax-deferred exchange. Certain strict timelines apply in every 1031 exchange, including: (i) a 45-day “identification period” and, (ii) a 180-day exchange period. Each of the foregoing time periods commences on the transfer of relinquished property. Starting then, the taxpayer must deliver a written identification letter to a qualified intermediary or other qualified party to the transaction that describes the property sought to be acquired as replacement property in the exchange. The taxpayer must actually receive the replacement property identified in the exchange no later than the earlier of the 180th calendar day following the transfer of the relinquished property or the due date for the exchanger’s tax return, including extensions. There is more nuance to the rules, but if you want to learn more, click on What Not to Do In a 1031 Exchange.

U.S. Apartment Rents Leap at Fastest Pace in Years

Average effective apartment rents nationwide rose 4.6% last year to nearly $1,180, Reis reports. This was the fastest pace since 2007. According to Axiometrics, multifamily rents rose 4.7% year-over-year in the fourth quarter, the strongest performance since 2005 for that quarter. Read More…

Zillow’s Hottest Housing Markets in 2016

“Trendy tech centers like San Francisco, Seattle and Denver hogged the spotlight in 2015,” Svenja Gudell, Zillow’s chief economist, said in a statement. “But this year, the markets that shine brightest will be those that manage to strike a good balance between strong income growth, low unemployment, and solid home value appreciation.”

Find out who tops the list for 2016. Read More…

1031 Exchanges Under Attack! Help Support the Real Estate Industry Now

Take Action – Contact Your Representatives

Contact your congressional representatives using the link below and send a message to Congress that Section 1031 provides a powerful economic tool for stimulating the economy. It only takes one minute to voice your support for 1031 exchanges.