Archive | Section 1031 Basics

Rules Schmules – Get Some Advice

In its simplest terms, Qualified Intermediaries (QI), facilitating Section 1031 Exchanges, act as a third party in the sale of Relinquished Property (old property). The QI’s job is twofold:   a) memorialize and document the intent of the taxpayer and b) function as escrow agent for the net proceeds from sale. Section 1031 is a tax […]

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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 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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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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