1031 Strategies: The Puzzle of a Partnership
We all know that an individual or an entity can sell an investment property and complete a 1031 exchange, indefinitely deferring any tax due. But
April 23, 2024
We all know that an individual or an entity can sell an investment property and complete a 1031 exchange, indefinitely deferring any tax due. But
While many investors turn to a 1031 exchange because they don’t want to pay the tax on the sale of investment property, few stop to
A partial exchange, whether planned or by happenstance, can be a viable exchange strategy. The words “can be” imply that there are circumstances when this
Most investors know that in order to complete a successful 1031 exchange, they sell their relinquished property and have 180 days to buy the replacement
One of the most common questions we hear is “How long must I own a property before I can do at 1031 exchange?” Unfortunately, this
The benefits of using a 1031 exchange when selling investment property are well known. But how do you maximize gain deferral when timing issues—like the
If your plan is to complete a 1031 exchange that results in no tax being paid, then you need to understand the target value of
For investors, one of the main reasons to use a 1031 exchange is deferring any tax due so that any return they earn can be
A number of investors own both a primary residence and an investment property or two. They often have an interest in selling one and transitioning
#10 To consolidate or diversify real estate investments. By selling multiple properties and buying one larger replacement property, you lessen management responsibilities and may also
Just like in baseball, when planning for a 1031 exchange, understanding certain basics will help you have a successful turn at bat. Being brilliant at the
When it comes to qualifying for a 1031 exchange, not all investment property is created equal. IRS Code Section 1031 allows the exchange of property
There are several elements that must be satisfied in order to qualify for the tax deferral that a 1031 offers. One requirement is the property
The 1031 process has a number of rules and regulations critical to its success. By using the services of a qualified intermediary, most exchangers are
A 1031 exchange is an excellent tool to use to defer taxes indefinitely that might otherwise be due on the sale of investment property. Similarly,
One question that often arises in our conversations about 1031 exchanges is if related parties can play a role. Often, exchangers want to know if they
The benefits of using a 1031 exchange when selling investment property are well known. But how do you maximize gain deferral when timing issues—-like the
There are many details and nuances to consider when doing a 1031 exchange. We thought it might be helpful to address the most common do’s
Few events do more to change a person’s course in life than marriage, death or divorce. Issues can arise when one of these events comes
In today’s seller-friendly environment, some exchangers have determined that they can create value by finding an attractively priced replacement property or lot that can be
What can you do if part of the property you are selling is your primary residence and another part is investment real estate? One of
While many investors turn to a 1031 exchange because they don’t want to pay the tax on the sale of investment property, few stop to
A partial exchange, whether planned or by happenstance, can be a viable exchange strategy. The words “can be” imply that there are circumstances when this
Most investors know that in order to complete a successful 1031 exchange, they sell their relinquished property and have 180 days to buy the replacement
One of the most common questions we hear is “How long must I own a property before I can do at 1031 exchange?” Unfortunately, this
If your plan is to complete a 1031 exchange that results in no tax being paid, then you need to understand the target value of
The benefits of using a 1031 exchange when selling investment property are well known. But how do you maximize gain deferral when timing issues—-like the
Just like in baseball, when planning for a 1031 exchange, understanding certain basics will help you have a successful turn at bat. Being brilliant at the
There are several elements that must be satisfied in order to qualify for the tax deferral that a 1031 offers. One requirement is the property
Take Action- Help Protect 1031 Many of you may be aware the White House is proposing to cap 1031 at $500,000.00 of gain deferral. Over the
#10 To consolidate or diversify real estate investments. By selling multiple properties and buying one larger replacement property, you lessen management responsibilities and may also
Qualified Opportunity Zone (or “QOZ”) fund investments are a hot topic and have been receiving a lot of press lately. Many new offerings have been
Sometimes, the best intentions don’t quite get us to the finish line, but can leave us in a very painful spot. It’s best to steer clear
One of the basic rules to complete a successful 1031 exchange is that the taxpayer selling the relinquished property must be the same taxpayer that
There are many details and nuances to consider when doing a 1031 exchange. We thought it might be helpful to address the most common do’s
A partial exchange, whether planned or by happenstance, can be a viable exchange strategy. The words “can be” imply that there are circumstances when this
For investors, one of the main reasons to use a 1031 exchange is deferring any tax due so that any return they earn can be
A number of investors own both a primary residence and an investment property or two. They often have an interest in selling one and transitioning
The 1031 Regulations state that the ID letter must be signed by the exchanger or exchanger legal agent. The signed ID letter can be scanned
You received good advice. Changing your letter or swapping it for another after the deadline can be considered tax fraud. One attorney that helped a
When it comes to qualifying for a 1031 exchange, not all investment property is created equal. IRS Code Section 1031 allows the exchange of property
Yes, both are “like-kind.” However, land is not a depreciable asset, so be aware that you will trigger some tax consequence on the recapture of
You can. There is no requirement that you identify property to your QI before you submit a contract, though we recommend that you insert 1031
When considering a 1031 exchange on the sale of timberland, there are a number of factors that need to be examined. Timber transactions may vary
There are other types of property that can be fractionalized besides traditional real estate that still work in the context of a 1031 exchange. With
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