It’s important to understand that there are three distinctively different types of real estate, some can be exchanged, some are prohibited from tax deferred exchange treatment. The three types are personal use, business/investment use and dealer property. Favorable treatment exists for the sale of a personal residence if the property has been the primary residence […]
Each year we receive calls from taxpayers who have sold their investment property before engaging us to represent them as their Qualified Intermediary. They are still in possession of the cash and have just settled on Replacement Property to acquire and want our assistance in structuring the transaction to get the best tax deferred result. […]
Section 1031 can be used effectively to plan for major lifestyle changes. Use Section 1031 early, and use it often!
By George E. Foss III The New Hampshire Department of Revenue (DRA) has recently developed a new audit tactic that could cost your Clients a lot of money, and expose you or your firm to professional liability. The intent of this message is to describe the current situation. With the advent of the Single-Member […]
Myth Busted: “Like-kind” means ANY realproperty can be Exchanged for ANY real property. Don’t get caught with the assumption that land can’t be exchanged for an apartment building. When applied to a Tax Deferred Exchange, the term “Like-Kind” is a term of art that simultaneously means four things: Location, Type, Use and Value. Location of Property: For […]
We are often asked how Section 1031 transactions are monitored by the Internal Revenue Service (IRS) and whether a 1031 police force exists to monitor taxpayer actions. The truth is that in nearly three decades of practice, we have never been informed of the existence of this authority. However, we regularly point out to clients […]
Real estate is a solid, practical, easy to understand investment vehicle. It is readily available in a variety of forms all across the United States. It can be acquired with cash, debt or exchanged for existing property holdings. Section 1031 Exchanges of real estate are the best way to maximize your cash flow and equity […]
Entering into a Section 1031 Exchange should be done with careful consideration of your overall goals and objectives. The successful completion of an exchange requires that the old or Relinquished Property be replaced with new or Replacement Property of equal or greater value. Selecting the new property takes a certain amount of due diligence. If […]
Section 1031 is the most underutilized tax deferral tool still available to the US Taxpayer. There are two primary year end tax considerations when using Section 1031. This article describes these considerations.
Taxpayers who own a second home and want to defer the capital gain on sale have used one of two strategies to achieve tax relief. The property can be converted to rental property for a minimum of two years prior to sale and structured as a Section 1031 Exchange using a Qualified Intermediary with the […]