1031 Exchanges



1031 Tax Reform Update – June 2018

June 2018 As we all know, Section 1031 was preserved in the 2017 Tax Cut and Jobs Act (JCTA), but only for real property assets.  Personal property assets, such as machinery, equipment, vehicles, rolling stock, aircraft, collectibles and artwork, no longer qualify for...

What Increases Tax Basis in a 1031 Exchange

What is tax basis? The term “basis” is the cost of a property for tax purposes.  When a property is initially purchased, its basis is the price paid for the property plus acquisition costs; often this is referred to as the “purchase money basis”.  Over the time the...

1031 Exchange Updates & Impacts for 2018

Be sure to also read our 1031 Exchanges Trends & Info for 2019. 2017 was another record year for 1031 exchanges. Tax reform spurred movement in the industry and the new law will greatly impact real estate and Section 1031. As we start this new year, here are some...

NO TRICK: A Treat for Unsuccessful 1031 Exchanges!

Tax Straddling A treat from the IRS? Taxpayers should not be spooked if they are unable to complete their 1031 Exchanges. A treat may exist for a calendar-year taxpayer who initiates a 1031 tax-deferred exchange during the last few months of this year only to find that...

Tax Straddling for 2016-17

If a taxpayer successfully completes a 1031 Exchange, major benefits include deferral of taxes and the ability to invest all of their equity. However, if a taxpayer is not able to purchase new property to successfully complete the 1031 Exchange, and the exchange...

2 Is Better Than 1: A 1031 Win with Dual Use Property

If you are thinking of selling your dual use property – a primary residence property which is also used for business or investment purposes – you may qualify for the benefits of two sections of the Internal Revenue Tax Code. By combining IRC Sections 121 and 1031 in...

Replacing Debt in a 1031 Exchange

The below 1031 Exchange scenario regarding debt replacement is a frequent topic for taxpayers: Taxpayer: “The rules say that I must have equal or greater debt on my replacement property.” IPX1031®: “Well, not necessarily. You have to replace the VALUE of the debt that...

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