Myth Busted: “Like-kind” means ANY real property can be Exchanged for ANY real property. Don’t get caught with the assumption that land can’t be exchanged for an apartment building. The term Like-Kind appears in the Internal Revenue Code (IRC) in connection with Section 1031 Tax Deferred Exchanges and also in connection with Section 1033, Involuntary […]
Tag Archives | 1031 Rules
Selling Your Second Home without Paying Capital Gains Tax Takes Planning
It is possible to convert property from one type to another without tax consequences. Your primary residence can become your rental/investment property and your investment/rental property can become your primary residence.
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 […]
Section 1031 for Legislative Review
[slideshare id=2734268&doc=section1031forlegistlativereview12-16-09-091216211012-phpapp01&type=d] To download a PDF of this document click on “view on Slideshare” then on “download”
Attention Accountants & Attorneys in NH & VT – Lunch & Learn – Free CPE/CLE
Connecticut River Bank, NA and Edmund & Wheeler are teaming up for a series of Lunch & Learn events where Accountants & Attorneys can earn continuing education hours and enjoy networking and a free lunch. Several dates have been reserved for September and October.
SELL YOUR SECOND HOME WITHOUT PAYING TAX
Concerned second home owners are looking for ways to minimize tax exposure when selling their second/vacation homes. Many have owned these properties for years and are facing serious tax implications. It may be wise to convert second homes to investment property, then complete a 1031 exchange to defer all capital gains taxes.
Audit Proof Your Section 1031 Exchange
Taxpayers contemplating using the provisions of Internal Revenue Code Section 1031 are well advised to audit proof their transactions. The mere fact of including Form #8824 as part of the supplemental schedules in a taxpayers tax return will not give rise to the return being pulled for audit by the Internal Revenue Service (IRS). The […]
Section 1031 Related Party Rules
When conducting Section 1031 transactions with a related party the simple rule is that you can sell to a related party, but you cannot purchase from one. The IRS rationale is that the taxpayer is essentially “cashing out” or basis shifting in related party transactions. Exchanges between related parties can be conducted under special circumstances; […]
Trading Up Using the 1031 Exchange
In spite of decreasing real estate values across the nation, real estate investors continue to come up with innovative ways to make their investment turn out profitably. A powerful method for building real estate holdings is the use of 1031 Exchanges, which lets investors defer capital-gains assessment on investment property by reinvesting sale proceeds into […]
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 […]