Section 1031 or Section 1033?

Section 1031, Tax Deferred Exchanges, can be used in concert with or as substitution for  Section 1033, Involuntary Conversions- when a property is completely or partially destroyed by fire, natural disaster, theft or seizure or other taking or condemnation, including the disposition of the property upon threat or imminence of condemnation or eminent domain. Section 1033 […]

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ConservingSpace

Section 1031 Strategies for Conserving Open Space

State by state, individual efforts have been made to control sprawl but it has been a slow and arduous task and the controls have not been nearly as effective as a regional or national approach. Several national initiatives have bubbled to the surface to foster conservation efforts. Since 2004, the Departments of Defense, Interior, Agriculture, […]

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Real_Property

Real Property Can Be Exchanged (Sometimes)

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 […]

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What is Like-kind Property?

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 […]

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1031Police

The Section 1031 Police

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 […]

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1031 Insurance Policy

Section 1031 Insurance Policy

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 […]

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