Posted by permission of the author: Christopher Nolt, LUTCF Solid Rock Realty Advisors, LLC 2020 Charlotte Street, Suite 14 Bozeman, MT 59718 406-582-1265 Office 800-517-1031 Toll-Free 800-249-1033 Fax The IRC Section 1031 Exchange is one of the most powerful tax saving and wealth building tools available for people selling highly appreciated real estate. A properly structured 1031 exchange […]
Tag Archives | capital gains tax
The Sticky Business of Related Parties
Real estate investors who buy & sell from related parties often get blind sided by related party rules when using Section 1031.
“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 […]
Did Section 1031 Fall Off the Fiscal Cliff ?
No, not at all. While the discussion (if you can call it that) in Washington is for more streamlined tax parity, the new tax rates overwhelming approved in the American Taxpayer Relief Act of 2012, and signed into law on 1/3/2013, had little impact on 1031. If anything, it is a tax strategy not to […]
The Top 10 Reasons To Exchange
The top reason to conduct the sale of investment property as a Section 1031 Exchange is the dramatic opportunity for wealth building. Whether the property is owned by an individual, trust, LLC, S-corp or C- corp, utilizing untaxed dollars to acquire more significant investment property and generate greater cash flow from investment property is the […]
Using Section 1031 As A Business Exit Strategy
Running a going concern requires that the owner keeps an eye on the business continually and often at the detriment to the individual(s) at the helm. Daily operations can interfere with designing a plan to someday leave it all behind and still pocket a monetary reward on the way into the sunset. Most often, the […]
Structured Sales – A Solution for a Failed Exchange
While this technique is not for everyone, rather than face the taxes due when an exchange fails, this may be an option that will provide tax relief. The disappointment of a failed exchange (one where the identification fails or the replacement property is undesirable) is exasperated by the tax consequences of having to pay the […]
Cash: The “Fatal Attraction”
Real estate is a solid, practical, easy to understand investment vehicle. It is readily available in a variety of forms all across the United States. It can be acquired with cash, debt or exchanged for existing property holdings. Section 1031 Exchanges of real estate are the best way to maximize your cash flow and equity […]