While cash is always the gold standard, touching it can lead to unintended and expensive tax consequences. If the sale of investment assets leads only to cash, the long hard work of achieving equity can be diminished by over 30%. A strategy that utilizes a Section 1031 approach can keep all of the cash intact […]
Archive | Case Studies – Real Life Examples
The Intersection of 1031 and Conservation Easements
A recent client was contacted by a qualified land trust to acquire the development rights to his 500 acre tract of forest/meadow land. The property had long been identified by the conservation community as a key wildlife migration path to adjoining protected property. Our client had been approached numerous times but resisted a sale that […]
“My accountant told me to just pay the tax…….”
We hear this troubling refrain too often. It seems that many accountants and attorneys will tell their clients that a Section 1031 exchange is cumbersome and just delaying the inevitable. Some advise that the tax rates today are the cheapest you will ever see, “It’s easier to just pay the tax” they say. In far too […]
Zero Percent Capital Gains Tax, Really?
I took a call last week from a past client that was concerned about the potential capital gains tax if they sold a parcel of land and did not conduct a Section 1031 Exchange. While our business is to facilitate exchanges, we are always happy to help our clients navigate tax code implications in real […]
Sections 1033 & 1031
Our client was under agreement to sell his commercial property when a fire broke out and destroyed one of the two buildings on the property. After carefully renegotiating the agreement, he proceeded with a Section 1031 Exchange for the land and existing building and used Section 1033 for the casualty loss portion of his property. […]
The $600K Mistake. Don’t let this happen to you.
I took a call from a taxpayer yesterday. She wanted to ask some questions about a Section 1031 exchange. Her accountant told her to get in touch with us. Great, that’s what we do. She informed me that she and her husband purchased some land many years ago in what was then “way out of […]
Tax Deferred Life Style Change
Section 1031 can be used effectively to plan for major lifestyle changes. Use Section 1031 early, and use it often!