Value of a 1031 Exchange

When a taxpayer sells a capital asset whether personal or real property and if there is a gain, tax has to be paid on that gain in the year of the sale. A IRC Section 1031 provides an exception and allows the taxpayer to postpone paying the tax if the proceeds from the sale are reinvested in similar property as part of a qualifying like-kind exchange. Gain deferred in an exchange is tax-deferred, but not tax free. A taxpayer can completely defer all proceeds into new property or do a partial exchange and retain some of the proceeds but will have to pay taxes on the amount retained. Individuals, C corporations, S corporations, partnerships (general or limited), limited liability companies, tr

THE TECH OASIS KNOWN AS SILICON BEACH

It's no secret that Silicon Beach is the place to be if you're a tech company. Several factors — not least of which is the SoCal lifestyle — are drawing an increasing number of firms, including the Honest Co and IMAX. Facebook signed a 50k SF lease at Playa Jefferson (above) last year. "It's an area everyone is gravitating toward as being a good spot," A & G partner Daniel Green said. Silicon Beach — Playa Vista in particular — allows these companies more square footage than they can find elsewhere, according to Green. They are attracted to having such scale while also being near the beach. Silicon Beach, as some CRE experts point out, stretches beyond Playa Vista to include Venice, Marina d

How Do I Calculate My Investment Property’s Cash on Equity Return?

The Return (or growth) on Investment (ROI) has done well over the years. However, the Return on Equity (ROE), or the income from your investment property could be much better. Here is a simplified example of computing your ROE: 1) Annual Gross Income Monthly rent times 12 = $____________ 2) Annual Expenses Include monthly mortgage payments times 12, then add insurance, property taxes, maintenance, utilities, and all other expenses spent annually. $____________ 3) Annual Net Income $____________ Subtract 2 (Expenses) from 1 (Gross Income) 4) Estimated Net Equity of Your Investment Property (Your Realtor will assist you with this) $____________ 5) To Calculate Your Property’s Approxima

The Reverse Exchange and Supporting Market Conditions

The value of an IRC 1031 Exchange is often found in the replacement property. In order to meet the expectations of each investor, diversity within a real estate portfolio is necessary. Most investors consider multiple properties before narrowing down their selections to a few fortunate enough to pass their inspection. Due diligence is further done to ensure the asset is strong and accurately reported. During this process investors consult a team of professionals including their CPA, attorney, agent, and lender for additional insight regarding their pipeline. Du ring this process the use of a traditional delayed straight-forward exchange may not be ideal. Market conditions may prevent an inv

7 Important Questions Every Investor Needs to Ask

Real Estate Investors continue to look for ways to manage their investment portfolio and to create the most of its potential. Here are 7 essential questions to consider: 1- How do I create Greater CASH FLOW from my Properties? How do I measure their cash producing performance and returns from the increased equity over the years? 2- Is it possible to Raise the level of Appreciation in my Investment Properties? 3- Is Depreciation (my tax write-off) still effective with my Investment Property? 4- How can I reduce the Stress and Time spent managing my Properties without sacrificing Income or Security? 5- Can I Reduce my Risk factors including market adjustments by Diversifying my Inve

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Anie Mayelian  (818) 915-9118 
DRE #0077825

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