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In 2020, RM Communities launched as a sister-company to RealtyMogul to directly acquire multifamily apartment complexes and offer those investments on the RealtyMogul.com platform. Since then, RM Communities has built its own proprietary playbook and processes.

A cost segregation report can significantly impact Schedule K-1 tax reporting by affecting depreciation deductions and taxable income. If you own real estate and conduct a cost segregation study, you should know how to identify the impact on your Schedule K-1 for that tax year.

Imagine you sell a property and need to reinvest the proceeds into a new property to qualify for the 1031 exchange benefits. The challenge arises when you can’t find a suitable replacement property that uses the full amount of your exchange proceeds. In such cases, any leftover equity can become a “boot,” which is subject to capital gains taxes. This is where DSTs come into play.

Triple Net Lease (“NNN”) properties are often marketed as passive investments, appealing to those seeking stable, predictable income with minimal management responsibilities. These properties typically involve single tenants responsible for paying property expenses, including maintenance, insurance, and taxes. While NNN investments do offer several advantages, they are not as passive as they might seem. Here’s why:

When selling a property, it’s essential to understand the various taxes that may apply, as they can significantly impact your final proceeds. The amount you owe depends on factors such as how long you’ve owned the property, whether it was a primary residence or an investment, and your overall income level. Federal and state capital gains taxes, depreciation recapture, and local transfer taxes can all add up, often consuming a substantial portion of your profits.

When comparing investment structures like Delaware Statutory Trusts (DSTs) and Tenancy-in-Common (TICs), it’s crucial to examine several key factors, including liquidity, certainty of close, tax reporting, financing structure, and associated costs and fees. Both DSTs and TICs allow multiple investors to own fractional interests in larger properties, yet they differ significantly in how they handle these aspects. Understanding these differences can help investors make informed decisions about which structure best suits their investment goals and risk tolerance.