End of Year Reminders for a 1031 Happy Holidays


Tax Straddling

When a 1031 Exchange is opened in the latter part of the year, a seasonal treat worth mentioning is “tax-straddling”. If that exchange is successfully completed, those taxpayers defer taxes to receive the benefits of the 1031 Exchange. However, if that exchange fails and is not completed, taxes will be due. The treat for those taxpayers is that they may still qualify for a “mini-tax deferral” (via tax straddling) where they can report and pay their taxes on their 2022 tax returns instead of immediately on their 2021 tax returns. Read more here.

California Clawback

If you exchanged California real property for real property/ies outside of California from 2014 on, you must file an annual FTB 3840 form the year of your exchange and each year after until your Replacement Property is sold in a taxable sale. For more info visit FTB CA reporting like-kind exchanges.

Holiday scams and identity theft

Holiday scams and identity theft are on the rise. Take extra care while shopping online or viewing emails and texts. Read specific tips here and watch the IRS’ video.


 

 

IPX1031 – Choose the Experts

IPX1031 focuses solely on 1031 Tax Deferred Like Kind Exchanges. With over 30 years as the national leader of exchange services, IPX1031 expertise, strength and security are unmatched.  We pride ourselves on keeping our clients and their advisors current on tax issues pertaining to section 1031 Exchanges and applications. We aim to be your complete informational resource and to provide you with the knowledge, support, documentation and protection necessary to guide you through the Exchange process.   For further guidance on how to fully maximize this powerful strategy, please contact IPX1031.

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