Seller Carry Back & 1031 Exchanges
Sometimes it is necessary or desirable for an Exchanger to accept payment from the Relinquished Property purchaser in the form of cash and a promissory note.
Related Party Exchanges
Exchanges between related parties are allowed but the Exchanger must follow specific rules for the exchange to qualify for tax deferral.
Refinancing Before and After Exchanges
Refinancing to pull equity out of a property prior to or after completing a tax deferred exchange can result in a taxable transaction under the “step transaction doctrine.”
Property Held for Resale Purposes
The intent by the taxpayer to hold property “primarily for sale” will prevent the property from qualifying for IRC §1031 treatment.
Partnership Issues
Can I dissolve my entity right before the close of escrow?
Other Interests in Real Property and Mixed Use Exchanges
Certain interests in real property, such as natural gas pipelines, may be exchangeable for a fee interest in real property.
LLC Issues in a 1031 Exchange
Because of advantageous tax treatment combined with liability protection, limited liability companies (LLCs) have become a preferred way to own real estate in the United States.
