IPX1031® Insight Blog
1031 Update on Capitol Hill – $3.5T Infrastructure Bill Begins – September 2021
September 2021 1031 Will Be In or Out The House recently passed the 2022 reconciliation Budget Resolution that sets up work on the 3.5 trillion infrastructure plan including social programs and tax increases. It is the tax increases that threaten Section 1031 with a...
1031 Update on Capitol Hill – Senate Amendment Voice Vote – August 2021
August 2021 On August 11, the U.S. Senate approved an amendment to preserve Section 1031 in its current form. The amendment was offered by Sen. Kennedy (R-LA) as part of the budget resolution Vote-a-Rama, and it passed by unanimous voice vote. While the passage of...
Top Misconceptions About 1031 Exchanges for 2021
For 2021, here are our latest top misconceptions we've found that the public has about 1031 Exchanges. 1031 Safety in Tax Reform Like-Kind Property Vacation Home Usage Reverse Exchange Reinvesting Proceeds and Replacing Debt Partially Tax Deferred Exchanges...
IRS Cannot Extend Statutory Deadlines Beyond What Is Permitted in a Disaster Extension
IRS Cannot Extend Deadlines Taxpayers frequently ask us if there is any way to extend the 45-day and 180-day deadlines for identifying Replacement Property and completing an IRC Section 1031 Exchange. As a recent IRS letter pointed out, the answer is, “probably not.”...
Increase in Summer Travel Spurs Interest/Questions/Demand in 1031 Vacation Property
Got the summer itch for traveling? If so, you’re like most Americans. Based on our recent research, we’re gearing up for a very busy travel summer. Most of us, having been in our homes for a very long time, now want to discover new places, cuisines, landscapes,...
How Will Americans Travel in Summer 2021?
For many Americans, the plane tickets have been booked and the bags have been packed as travelers are eager to take much-needed vacations, but what will vacations look like this summer? After conducting a survey on travel sentiment earlier this year, we re-visited the...
Top Reasons to 1031 Exchange
The Power of the 1031 Exchange Commercial and Investment real estate transactions have been moving at a brisk pace and a considerable percentage of those sales have been structured as 1031 Exchanges, allowing sellers to defer taxes otherwise due in the year of sale....
Oppose Proposals to Eliminate or Limit 1031 Exchanges
We need YOUR help! The President has proposed limiting 1031 Exchange tax deferral to a maximum of $500K. The administration says the drastic change is part of the plan to “pay for” the cost of the $1.8 trillion American Families Plan. This is a direct threat to...
1031 Information Exchangers Should Know When Filing Your 2021 Taxes in 2022
Updated for 2022 2022 Tax Year Reminders For the 2022 calendar year, taxes are due on Monday, April 18, 2022 as Washington, D.C. observes the Emancipation Day holiday on April 15. Taxpayers in Maine and Massachusetts have until April 19th to file this year due to...
CRE Playing Defense to Preserve 1031
WealthManagement.com recently published The CRE Industry is Playing Defense to Preserve 1031 Exchange Tax Benefits and our IPX1031 General Counsel, Suzanne Goldstein Baker was quoted. Read Suzanne's quotes about the ongoing efforts to educate members of Congress about...
1031 Exchange Identification Issues – Identifying Uncommon 1031 Property
Specific rules and regulations must be followed for a successful 1031 Exchange, such as identifying Replacement Property within forty-five days of the closing of Relinquished Property. For most exchanges, the identification rules are not difficult to follow. But...
Tax Day 2021: America’s Biggest Procrastinators
We’re all guilty of a little procrastination every now and then, but who procrastinates the longest when it comes to filing taxes? Tax Day is right around the corner and the window for procrastinating on filing your taxes is getting smaller. In order to find out where...
IPX1031 Adds Mark Bullock, Esq. as Regional Attorney Manager of their Mountain Region
Mountain Region (February 2021) - IPX1031 announces the expansion of its Mountain Region operation to be managed by industry veteran Mark Bullock, Esq. “We are excited to add such a respected professional and 1031 expert to our expanding team,” said Jennifer Keen,...
Vacations Spurring Investment 1031 Exchanges
The rollout of vaccines is exciting but slower than many desired and most people are grappling with 2021 vacation plans. This has resulted in some investors contemplating if now is a good time to purchase a vacation, weekend or second home to meet their vacation or...
How Will Americans Travel in 2021?
With 2020 in the rearview mirror, Americans are feeling hopeful about travel and taking much-needed vacations in 2021, but will vacations bounce back this year? We surveyed Americans to find out if they plan to travel this year and, if so, what their travel...
1031 Exchange Trends and Info for 2021
As we start this New Year, below are key trends, issues and points to remember regarding 1031 Exchanges. be sure to read our newest 2022 trends - click here 1031 Exchange Trends and Market Update 2021 2020 was yet again another record year for 1031 Exchanges. What’s...
1031 Exchange for Tiny Homes & Tiny Offices
The allure of a tiny home or tiny office appeals to a growing number of people and we are seeing many creative uses. Besides being used as a primary residence, tiny homes are now being utilized as a backyard sanctuary, office or school workspace ‘in a box’, business...
Real Property Defined for Section 1031 Like-Kind Exchanges
The IRS issued Final Regulations, TD 9935, effective Dec 2, 2020, that provide guidance regarding the definition of real property for Section 1031 like-kind exchange purposes. The 2017 Tax Cuts & Jobs Act (TCJA) amended §1031 by limiting its application to real...
Top 10 Misconceptions About 1031 Exchanges for 2020
For 2020, here are our latest top 10 misconceptions we've found that the public has about 1031 Exchanges. COVID-19 pandemic 1031 Extensions Replacing Debt The Term Like-Kind Vacation and Second Homes Qualify Reverse Exchange Partial Exchange Qualified Intermediary...
Survey Reveals America’s Ideal Tiny Home and Tiny Office
They might be small, but tiny homes have a lot to offer to the right person with an open mind. Tiny homes have appealed to adventurous homeowners, investment property owners and travelers who are looking for a cozier and simpler lifestyle or vacation. And even though...
2020 Summary: 1031 Exchange Disaster Relief & Rev. Proc. 2018-58
Many disaster extensions have been granted by the IRS in 2020. Accordingly, we thought it would be helpful to provide a summary of the relevant portions of Revenue Procedure 2018-58 that relate to 1031 Exchanges as well as how those provisions relate to disaster...
1031 Trick or Treat? Estate Planning, Tax Straddling, California SB 1079 & Cybercrime
The Brilliance of 1031 in Estate Planning We often talk about the immediate benefits of a 1031 Tax Deferred Exchange. 1031 is a great way to preserve equity, reposition assets and defer substantial amounts in taxes. What many do not realize is that 1031 Exchanges are...
1031 in Estate Planning
The Brilliance of 1031 in Estate Planning We often talk about the immediate benefits of a 1031 Tax Deferred Exchange. 1031 is a great way to preserve equity, reposition assets and defer substantial amounts in taxes. What many do not realize is that 1031 Exchanges are...
How to Maximize 1031 Vacation and Rental Property During Pandemic Times
Be sure to read Increase in Post-Covid Travel Spurs Interest/Questions/Demand in 1031 Vacation Property Maximize Your 1031 Options In our recent How Americans Plan to Vacation During Covid-19 article, we reported that nearly half of Americans have taken or plan to...
No Change as IRS Finally Clarifies COVID-19 Disaster Relief for 1031 Exchanges
IRS Declines to Grant Further Pandemic Extensions to §1031 Taxpayers As you may know, the IRS extended certain 1031 deadlines to July 15, 2020 in consideration of the difficulties that taxpayers were experiencing due to the pandemic. Though the extensions expired on...
How Americans Plan to Vacation During Covid-19
The Covid-19 pandemic has turned vacation plans upside down for Americans. Instead of booking flights to travel abroad, travelers are opting for road trips and extended stays at vacation homes and short-term rentals locally within the United States. In order to find...
Options if Your 1031 Exchange Property Has Been Impacted by COVID-19
Maximize Your 1031 Options Some taxpayers who recently completed a 1031 Exchange by purchasing an investment property just prior to the start of the pandemic have witnessed a drop in revenue and/or property value. In some cases the value drop due to the economic...
Investors Have a Rare Window to Make High Returns on 1031 Exchanges
IPX1031 EVP and Western Region Manager, Jennifer Keen, was recently quoted in ICSC's June 26th article, Investors have a rare window to make high returns on 1031 exchanges, experts say by Brannon Boswell. Keen, along with other experts, talks about the current 1031...
Strategic Outlook – Maximizing 1031 Exchanges (webcast)
IPX1031 EVP and Western Region Manager, Jennifer Keen, recently participated as a 1031 expert panelist in Maximizing 1031 Exchanges webcast hosted by Marcus & Millichap. To view the webcast, click here. Keen, along with the other panelists, talks about the current...
How to Maximize 1031 Via Your Home Office
Will Home Offices Be a New Normal? The shelter-in-place orders have had a significant impact on most of us, but one of the biggest changes for many people is that they are being asked to work from home. While most of us will go back to our regular workplace as quickly...
Survey Reveals How Airbnb Hosts are Coping During Covid-19
Airbnb and short-term rental property owners have felt the first-hand effects of Americans putting travel on hold due to Covid-19. Along with Americans limiting their travel, several states and local governments have put restrictions on short-term rentals, which has...
Additional 1031 Extensions Requested
Real Estate Coalition Requests Clarification of Disaster Relief for §1031 Exchanges On April 9th the IRS extended deadlines for the identification and purchase of properties in like-kind exchanges in response to the novel coronavirus pandemic, it is unclear whether...
1031 Extensions Granted!
Important 1031 information regarding IRS extended deadlines Great News! On March 9, 2020, the IRS issued Notice 2020-23, extending a variety of deadlines, including 1031 deadlines. Although the Notice is confusing, because it is not written like the typical Disaster...
Your 1031 Funds Are Safe
Important information for our customers and 1031 community regarding safety and IRS deadlines During this period of volatility in the financial markets we have been receiving inquiries regarding the safety of the funds that we holding on behalf of our Exchange...
Combination Exchanges
When a taxpayer intends to acquire multiple Replacement Properties, with some properties closing before the Relinquished Property sale and some properties closing after, both the Forward and Reverse Exchange structures can be combined to maximize the tax deferral.
Tax Day 2020: America’s Biggest Procrastinators
NOTE: Read the latest 2022 tax procrastinators version here. and 2021 tax procrastinators version here. Let’s face it, no one really looks forward to filing their taxes. Between the time, the paperwork and the thought of potentially owing money to the IRS, most...
Wire Fraud – Protect Your Business and Your Clients
Our IPX1031 Associate General Counsel, Jim Miller, Esq. recently wrote this Wire Fraud article for the REALTORS® Land Institute. https://www.rliland.com/wire-fraud-protect-business-clients/ Wire fraud is a growing problem for everybody involved in real estate...
DSTs : A Management-Free 1031 Exchange Option
Delaware Statutory Trusts (DSTs) offer an intriguing option for investors who are looking for properties to complete their 1031 Exchanges. Why? DSTs do not have the typical responsibilities associated with managing investment properties. A DST is an “arm chair...
California’s Office of Tax Appeals Gives Hope to Drop and Swaps
California’s Office of Tax Appeals Gives Hope to Drop and Swaps (in California) On January 28, 2020 the California Office of Tax Appeals (OTA) delivered its opinion denying a Petition for Rehearing of the appeal of Sharon Mitchell, OTA Case No. 18011715. This opinion...
Best Large Cities to Buy Investment Property 2020
Whether you’re looking to become an investment property owner, or are looking to buy additional investment properties, large cities can offer a number of benefits. From high-rises to single-family homes, large cities provide more diverse housing options as well as...
Best Cities to Buy Investment Property 2020
Being an investment property owner can be a lucrative way to bring in extra income, or even lead to a full-time job, but the key is to know where and when to invest. In order to determine the best cities to buy an investment rental property, we recently analyzed home...
1031 Exchange Trends and Info for 2020
Be sure to read our current 1031 Exchange Trends for 2022. And read past trends 1031 Exchange Trends for 2021, 1031 Exchange Trends for 2019, 1031 Exchange Updates & Impacts 2018, 1031 Exchange Trends for 2017, and 1031 Exchange Trends for 2016 As we start this...
1031 Exchange Checklist
A 1031 Like Kind Exchange transaction requires planning, expertise and support. Here’s a checklist outlining key steps in your exchange. How to do a 1031 Exchange Choose your 1031 Qualified Intermediary (QI) Consult with your tax...
1031 Strategy for Partnership Scenarios
To keep your holiday season merry and bright, here are a few key 1031 updates and reminders to wrap up the year: 1031 Strategy for Partnership Scenarios As the year winds down, we are encountering more and more partnership questions on the sale of investment real...
Opportunity Zones & 1031 Exchange Tax Deferral Strategies
Ever since the Opportunity Zone (OZ) program was introduced in 2017, investors have asked many questions about the benefits of the program. With another key deadline quickly approaching - December 31, 2019 being the last day Opportunity Zone investors can...
Comparing Opportunity Zones and 1031 Exchanges
The Opportunity Zones incentive is a new community investment tool established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural areas nationwide. Opportunity Zones provide a tax incentive for investors...
1031 Trick or Treat? Tax Straddling, Winter Rental Destinations & Cybercrime
Tax Straddling - Pay Taxes in 2020 or 2021?When a 1031 Exchange is opened in the later 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...
Tax Straddling – Pay Taxes in 2020 or 2021?
updated October 2020 Be sure to read Tax Straddling – Pay Taxes in 2021 or 2022? When a 1031 Exchange is opened in the later part of the year, a seasonal treat worth mentioning is “tax-straddling”. If that exchange is successfully completed, those taxpayers defer...
1031 Cybercrime
Fraud and cybercrime has escalated. Technology and tactics used by cybercriminals to access financial, corporate and personal data, particularly relating to real estate transactions, continues to evolve. Bottom line, any of your data and transactions could...
Cities with the Most Airbnb Properties
Since its founding in 2008, the popular accommodation service Airbnb has grown to a multi-billion dollar company and allowed investment property owners to rent out their homes, apartments and condominiums to guests all over the country. Investment property owners in...
