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 […]
Tag Archives | Real Estate Exchange
Is It Too Late To Exchange? – There May Be a Solution
Each year we receive calls from taxpayers who have sold their investment property before engaging us to represent them as their Qualified Intermediary. They are still in possession of the cash and have just settled on Replacement Property to acquire and want our assistance in structuring the transaction to get the best tax deferred result. […]
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 […]
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 […]
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.