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 Year End Tax Considerations
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.
Changes to Section 121 for Exchangors
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 […]
Section 1031 Safe Harbors
While Section 1031 has been in the Internal Revenue Code since 1921, it has been enhanced and expanded numerous times since inception. The 1991 regulations provided several “safe harbors” to protect transactions from being disallowed. These “safe harbors” define the edge of safety and effect when an exchangor is entitled to the receipt of exchange […]