Common 1031 Misconceptions

While gearing up for the busy year-end transaction season, here are a few of the topics we get asked about the most. 1. The Term Like-Kind 2. Sell One, Buy One 3. Reinvest Everything 4. Replacing Debt 5. Exchange a Vacation Home The Term Like-Kind “I am selling an...

1031 Tax Reform Update – November 2015

A lot of unexpected activity has been happening in Washington, DC over the past month. House Speaker John Boehner retired and Rep. Paul Ryan (R-WI) was elected to succeed him. Speaker Ryan is familiar with IRC Section 1031 and understands that it provides only a...

Tax Straddling for 2016

Trick or treat time? A treat might exist for those taxpayers who initiate a 1031 tax-deferred exchange towards the end of 2015 only to find that their exchange fails in 2016 or they receive any amount of cash boot in 2016. The IRS provides the treat in that there...

Key Refresher for 1031 Exchanges

With the new school year starting, timing is perfect for a 1031 Exchange refresher! 1031 Exchanges are once again an important strategic investment tool for many investors and businesses as the real estate investment market’s momentum continues to escalate. Following...

Cosenza on 1031s: ‘What Are the Feds Thinking?’

by John Salustri GlobeSt.com September 17, 2015 “A loss of like-kind touches everyone who touches real estate,” says Joe Consenza, vice chairman of the Inland Real Estate Group in this GlobeSt.com interview. In preparation for CCIM’s upcoming conference, CCIM Thrive,...

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...

1031 Tax Reform Update – August 2015

1031 Tax Reform Update – August 2015 The August Recess is here, and with Congress on vacation, things are quieting down in Washington, DC. Although it appears that comprehensive tax reform will be taken up by the next Congress and Administration in 2017, there are...

Section 1031 Exchanges are Important to a Healthy Economy

by rliland, Contributor James Miller, Assistant General Counsel, IPX1031® Over the past two years there have been numerous proposals to restrict or eliminate I.R.C. §1031 tax deferred exchanges. These proposals are based on misunderstandings about §1031 and do not...

Five Reasons to 1031 Exchange

5 Point Analysis Real estate investment portfolios should be reviewed periodically. Why? Because as the real estate market changes, new opportunities become available and financial objectives shift. Depending on your circumstances, it may be fortuitous to reposition a...

Results of EY Study Resonate with Members of Congress

1031 Tax Reform Update – June 2015 It's been almost three months since the March 17th release of the Ernst & Young Economic Impact of Repealing Like-Kind Exchange Rules study. The study provides important quantitative analysis which demonstrated that a repeal of...

Cyber Fraud – an Emerging and Worsening Threat

Take Key Steps to Combat It Simply put, cyber fraud is when credit and financial information is stolen online by a hacker and used in a criminal manner. What’s alarming is the rapid growth of detected cyber fraud incidents, as well as the financial costs associated...

Do Quick Sales Qualify for 1031 Treatment?

It's All About Intent. If a real estate investor bought a property for $475,000 and sold it a month later for $700,000, they would most likely tell you that it was a great investment. That same investor would probably tell you that good fortune struck twice if they...

Harnessing the Power of Reverse, Parking & Improvement Exchanges

Expanding the Reach of 1031s Is a 1031 Exchange in your future? Do you have an investment property to sell and are looking for a property to purchase? What would happen if you find the ideal replacement property before you can sell and close on your current property?...

Tax Reform Update – February 2015

Washington, taxes and the growing deficit are constantly in the news. You’ve also been hearing about tax reform, then specifically 1031 Exchange tax reform and ramifications from us. So as of today, this is where we are at. We need YOUR voice and we need it NOW....

1031 Tax Reform Update – January 2015

Today, Senator Orrin Hatch, chairman of the Senate Finance Committee, announced the formation of five bipartisan Finance Committee Tax Working Groups to analyze current tax law and reform options within each group’s designated focus area. Each working group will be...

1031 Exchanges Trending Strong for 2015

Tax deferred exchanges are at an all-time high and continued momentum is expected. This growth continues from 2014 and is fueled by rising real estate values, higher tax rates and lower interest rates. With the recent threat of elimination or limitation of 1031...

1031 Tax Reform Update – December 2014

The midterm elections are now complete and the Senate, House of Representatives and White House are preparing their agendas. Since tax reform has been a popular election topic, it is probable that there will be tax reform bills introduced in February. All the recent...

Tax Straddling for 2015

Which Year to Choose? October is now in full force with waves of pink ribbons, pumpkins and scary haunted houses. However being scared is not necessary for those investors hesitant about initiating a 1031 Exchange prior to year end because they fear that they won’t...

1031 Tax Reform Update – October 2014

IPX1031® continues to seize opportunities to educate and clarify facts about 1031 Exchanges. Last week, IPX1031® President, John Wunderlich and General Counsel, Suzanne Goldstein Baker, attended an event in Wisconsin and listened to Rep. Paul Ryan, likely to be the...

1031 Tax Reform Update – September 2014

Congress is back to work after its month-long August recess, and upcoming November elections are now a big focus. Currently, there is talk about movement on priority legislation like corporate inversions, where a US company acquires a foreign company and moves its HQ...

Shades of Grey in 1031 Flips

Forget cooking shows, America’s newest reality show obsession is watching real estate shows such as Flip This House, Flip or Flop, and Rehab Addict. Seeing how a house is bought at a bargain price, quickly transformed and sold for large profits can be scintillating....

1031 Tax Reform Update – August 1st, 2014

IPX1031® General Counsel, Suzanne Goldstein Baker, just returned from a meeting-packed visit to Washington D.C. She and other FEA (Federation of Exchange Accommodators) Government Affairs Committee leaders spent several days last week in a dozen Hill Visits meeting...

Stay Cool This Summer with 1031s

It’s the middle of summer and as investors dream about lazy days on the beach, a scorching hot question often asked this time of year is whether a vacation or second home qualifies for tax deferred 1031 treatment. Many investors desire to sell their investment...

IPX1031® Launches Microsite – Say NO to Section 1031 Tax Reform

Your Voice Matters. Stay Informed. Say NO to Congress. Discussions to reform federal tax code are taking center stage. While the goal of the reform measures may be to make the tax code simpler and stimulate economic growth, the opposite will be the result. With all...

Partnerships, Taxes & 1031s

Frequently investors pool money and form partnerships or LLCs* to acquire and operate investment properties. Partnerships can defer their taxes utilizing 1031 exchanges when they sell their properties. Although partnerships and LLCs are well suited for owning and...

Tick Tock – California Clawback

Watch out California property owners. Starting in January 2014, the tax man might come a knocking. In the past, if you have moved California investments via a 1031 Exchange out of California, from January 1, 2014 on, you will now be required to file an annual...

No Extensions for 1031s – Really?

180 is the magic number. One hundred and eighty days. If you don’t complete your 1031 Exchange within the IRS mandated time frame, it’s simple. Failed exchange. However there can be exceptions when catastrophic events such as natural disasters occur and only if the...

Deferring Taxes – Yes Please!

Taxes are a hot topic these days. If you can defer your taxes, it’s truly a no brainer. If certain conditions are met. a 1031 Exchange allows an investor to defer taxes by simply rolling profits from the sale of an investment property into another investment property...

Fabulous Five Point Analysis

Now is a good time to review your real estate holdings investment portfolio. Do a quick five point analysis and evaluate to see if a 1031 Exchange makes sense for you. Appreciation Depreciation Cash-flow Diversification Tax deferral Five Reasons to Exchange Aug 2012...

The Build to Suit Exchange

The build-to-suit exchange, also referred to as a construction or improvement exchange, gives the Exchanger the opportunity to use all or part of the exchange funds for construction, renovations or new improvements to the Replacement Property.

Exchanges with Intermediary

In a simultaneous exchange, the old Relinquished Property and the new Replacement Property are transferred concurrently.

Personal Property Exchange

Deferral of capital gain and other taxes through an IRC §1031 tax deferred exchange is also available for personal property held for investment or for productive use in a trade or business.

Multiple Asset Exchanges

Some business or investment assets, such as a hotel or farm, consist of both real and personal property.

The Exchange Process

Timing is important. Certain actions must be taken in sequence and exchanges must be completed within strict time limits.

Closing Costs and the Tax Deferred Exchange

There is little authority in the Internal Revenue Code or Treasury Regulations as to how to treat the variety of expenses and closing costs which may be associated with the sale or purchase of an exchanged asset.

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.

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IPX1031 is a full service Qualified Intermediary with highly specialized exchange divisions to handle any type of exchange transaction nationwide.

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