A deferred sales trust is a method used to defer capital gains tax when selling real estate or other business assets that are subject to capital gains tax. Instead of receiving the sale proceeds at closing, the money is put into a trust and only taxed as the funds from the sale are received.
Tag Archives: Investments
What the Election Results Mean for Real Estate Investors
Multifamily investors are now more likely to spend their money on properties in secondary and tertiary markets rather than in primary markets.
Most economic indicators remained in the plus category this month. Job growth, unemployment, inflation, and consumer confidence all continue to suggest a solid overall economy. But there are also growing concerns tied to the much anticipated slow down.
The apartment sector notched another healthy quarterly performance as the resounding strength of the employment market sustains demand for rentals. Class B and C units maintained particularly tight vacancy levels, delivering solid rent growth. Markets with elevated construction levels could face pockets of heightened competition as new apartment facilities go through lease-up.
Investor confidence in the stability of the multifamily sector this year remains strong, despite robust new supply levels and concerns regarding rising inflation and aggressive interest rate hikes.
Existing single-family home sales increased a modest 1 percent over 2017 as limited for-sale inventory kept the market from gaining traction. While many of the factors contributing to a restriction in sales velocity remain the same, changes to the tax code remove some of the incentives to homeownership, and anticipated interest rate increases this spring will bring additional challenges to the future of the housing market.
New Tax Law Holds Favorable Prospects for Commercial Real Estate; Potential to Boost Space Demand and Capital Flows