Another challenge is that the 1031 timing rules make it incredibly challenging to find a replacement property or properties to invest in with a desirable cap rate in my city, so I would be interested in an out of state investment, which would put even greater pressure on locating a replacement property considering I haven't even started to consider which states I could potentially invest in.While doing a bit of Googling, I came across the Delaware Statutory Trust (DST) that is a completely passive investment in real estate that allows for the deferral of capital gains on the sale of the investment property.I've read the pros and cons that the DST providers list on their websites, but I would love to hear from individuals with real life experience who have opted to use a DST in lieu of a 1031 exchange and from those who did the analysis and decided a DST was not right for them.

Two questions actually.First, is the 'de minimis' limit for an individual landlord $500 or $2,500?

Have you invested in a DST or DSTs?  Rima and I recently discovered them.  For "little fish" with just a few million to invest,  they seem far better than buying one or a few NNN properties, which puts all of your egg...

Here is the issue with combining personal funds and 401k funds to make a joint investment:The IRS could easily claim that such transaction violates the IRS conflict-of-interest and self-dealing prohibited transactions in accordance to the IRC 4975(c)(1(D),(E) and (F).

Hello BP folks,Here is a real scenario for one of my properties with regard to how to use the Safe Harbor for Small Taxpayers, Routine Maintenance, and/or De Minimis options.Property LCT has an original basis (just the building) of $70,000Here is the work performed on the property during 2016:1) The following done as part of a make-ready/turn over.  

Your carpet example is technically tangible personal property that should be depreciated over 5 years, but you could be eligible to elect the de minimis safe harbor exemption since it's under $2,500 ($500 if before January 1, 2016 so if it was then it wouldn't qualify) which would allow you to expense it in the current year rather than capitalize and depreciate.

I read an article about not setting up an LLC in Wyoming, Delaware, Nevada, insert other friendly state business tax structure, because I would still have to file in Arkansas where the investments are anyway and it's just more paperwork at the end of the day; however, I do not fully understand this charging order protection structure idea.

Alex - We've recently done this in DE, we are PA residents and our property is in DE.

It seems that at least in Delaware there is a standard template for private mortgages that many of the attorneys just use over an over...so it really shouldn't even cost that much to get the attorney to do.

I've heard Delaware and Nevada are popular, but I don't know if there are disadvantages to registering an LLC outside my state of residence (Illinois).