Why is the 1031 tax deferred exchange important to a real estate property investor?
The IRS 1031 tax code allows an investor in real estate to exchange from one investment property to another and defer taxes on the gain. Translated this means an IRS 1031 exchange is a rollover of equity of like properties, rather than an avoidance of tax. The investor continues to build wealth through real estate investment and maintains the hard earned equity. Any tax liability through inheritance, will be limited to the gain from the date of the inheritor’s acquisition, not during the years of ownership. • I am considering buying a duplex or 4-plex but it is occupied by tenants paying below market rents. What are my options? The City of Los Angeles Housing Department has very specific rules for rent increases and grounds for eviction. Currently rents can be raised 4% per year for Section 8 housing according to the Rent Stabilization Board. In general a landlord cannot terminate any tenancy without cause. In our experience, the only cause that seems to work is when the landlord needs
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