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Form Rod 2 Affidavit Addendum Fp7ca

Form Rod 2 Affidavit Addendum Fp7ca

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Instructions and help about affidavit addendum

The 721 exchange, similar to the 1031 exchange, allows an investor to defer capital gains taxes while relinquishing control of a property held for business or investment purposes. Both tax mitigation strategies offer investors strong alternatives to a traditional sale, in which taxes can exceed 20--30% of capital gains. The 1031, however, may not meet the goals of some investors. For example, an investor may be attracted to the stable income, tax benefits, and potential appreciation that can be provided by a REIT investment, which would not satisfy the requirements for a 1031 exchange. In a 721 exchange, a real estate investor contributes property to a REIT in exchange for units in an operating partnership that will then be converted into shares of the REIT itself. Every REIT has specific acquisition criteria, however, it is unlikely that the property a given individual wants to relinquish meets the criteria of the REIT the investor wants to invest in. The solution is to combine a 1031

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