I am understanding I can convert Operating Partner Units in an UPREIT to REIT shares (taxable) but the benefit is I can sell any percentage of the operating partner units, paying taxes on only that percent I sold.A friend that is a bank auditor, specializing in commercial real estate said:operating costs should total about 30%, leaving NOI 70%For us business people NOI in real estate is EBIDA (T left out as Taxes are an above the line expense)Any know, does the DST have to produce audited financial statementsSo now I feel I am better equipped to work with the RIRep and tackle the recommended PPMIf you really follow the track record of when these multi family unit being purchase and sell, average holding time is 3-4 years so you pay the premium in there and that's why how DST sponsor makes money.

The exemption allowed results in a “taxable value” of either 75% of the “ATI fair market value” or the final Current Fair Market Value for the tax year of sale, whichever is higher.

Hi Ryan,Typically construction financing isn't based on your taxable income and rather more contingent on your experience, FICO and the deal itself.

This 1031 Exchange Calculator can help you model out the taxable proceeds based on various situations. 

There is not a taxable event to you on the sale.

Your tax-free VA disability income helps you qualify for loans and lowers your taxable income.

Converting OP units to shares of the REIT creates a taxable event.Ok thanks.

Alternatively, your in-laws could partially gift the property by using the annual gift tax exclusion ($34K per couple annually), lowering the sale price and their taxable gain.

They will issue an IRS Form 1099 in January, reporting your total taxable income to you and the IRS.

Now that it’s a rental, you can deduct mortgage interest, property taxes, insurance, repairs, maintenance, and depreciation to reduce taxable income, but depreciation will be recaptured at up to 25% if you sell.