Using Multiple Tax Code Sections for Maximizing Your Money

Rev Proc 2005-14: Combining Primary Residence Exemption with a 1031 Exchange An effective way to minimize one’s tax liability is by combining the benefits of multiple tax code sections. In the 1031 Exchange industry, a way we see this strategy utilized is with the...

Top 10 Misconceptions About 1031 Exchanges 2019

For 2019, here are our latest top 10 misconceptions we've found that the public has about 1031 Exchanges:   “Like-kind” means I must exchange the same type of property, such as an apartment building, for another apartment building. FALSE (read answer) A 1031...

1031 Exchanges Trends & Info for 2019

Be sure to read our current 1031 Exchange Trends for 2022. And read past trends  1031 Exchange Trends for 2021, 1031 Exchange Trends for 2020, 1031 Exchange Updates & Impacts 2018, 1031 Exchange Trends for 2017, and 1031 Exchange Trends for 2016 Regarding Section...

Best Cities to Buy Airbnb Investment Property

Over the last 10 years, vacation rental company Airbnb has grown from a small startup with a few properties to a billion-dollar, global company that has disrupted both the vacation rental industry as well as the hotel industry. Airbnb has also changed the landscape...

How to Identify DST Properties in 1031 Exchanges

As the US investor population gets older we’ve seen an upward trend with investment funds being shifted into real estate holdings that are passively held. One such method is through a Delaware Statutory Trust (DST). A DST is an investment trust which holds one or more...

Tax Straddling – Pay Taxes in 2019 or 2020?

updated October 2020 Be sure to read Tax Straddling – Pay Taxes in 2021 or 2022? If your transaction closed at the end of 2018 and you are unable to find new property to identify or purchase the property that you have identified, you may still be able to defer paying...

Boot in 1031 Exchanges

The term boot refers to non-like-kind property received in an exchange. Usually, boot is in the form of cash, an installment note, debt relief or personal property and is valued to be the “fair market value” of the non-like-kind property received.  It is important to...

FIRPTA in 1031 Exchanges: An Ongoing Issue Made Simple

It’s no secret. There is and will continue to be a vast amount of foreign owned real property in the United States. And because of this, many investors involved in 1031 Exchanges have or will run across Foreign Investment in Real Property Tax Act (FIRPTA) issues. In a...

Are Cybercriminals Targeting Your 1031 Funds?

Fraud and cybercrime, particularly involving bank wire transfers for real estate transactions, continue to increase at an alarming rate. The Tax Code requires that a Qualified Intermediary (QI) hold your funds during the 1031 Exchange. Surprisingly, there are no...

Happy 10-31 Day!

10-31 Day haunts. Is your 1031 Exchange in safe hands? Watch if you dare. No tricks here. Cybercriminals are attacking 1031. Click to see what you can do to keep your 1031 funds safe.

Opportunity Zones – A Good Investment?

The Opportunity Zones that were created by the Tax Cuts and Jobs Act have generated a fair amount of buzz in the legal, accounting and real estate communities and have raised questions on application to 1031. An Opportunity Zone (OZ) is an economically distressed...

Are Your 1031 Exchange Funds at Risk?

1031 Due Diligence - Questions to ask a QI Section 1031 of the Tax Code requires that a 1031 Exchange intermediary hold the net sale proceeds from your sale until you purchase your new property. What you might not know is that during the last recession, real estate...

Strategically Buying Your Dream Vacation Home with a 1031 Exchange

Consider the Warm Benefits of 1031s Summer breezes. Cool mountain air. Crashing waves. Does your dream of a vacation or second home qualify for tax deferred 1031 treatment? Investors often ask if the proceeds from the sale of their investment properties will qualify...

2 Key Tax Strategies – Cost Segregation Studies & 1031 Exchanges

It is safe to assume that real estate owners and investors are interested in reducing and/or deferring their taxes. Cost segregation studies and 1031 Exchanges are two of the most valuable tax strategies available to real estate owners today. By utilizing a strategy...

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...

How Tax Reform Helps Partnership Issues in 1031s

A partnership continues to exist until it is terminated. Before the Job Cuts and Tax Act, there were two ways that a partnership could be terminated. First, if no part of the business was carried on by any of its partners and second, if there was a transfer of 50% or...

Non-Safe Harbor Reverse Exchanges

A “reverse” exchange occurs when the taxpayer acquires the Replacement Property before transferring the Relinquished Property. A “pure” reverse exchange, where the taxpayer owns both the Relinquished and Replacement Properties at the same time, is not permitted. As a...

Exchange Cooperation Clauses

Relinquished Property Sale Contract “Notwithstanding anything to the contrary, Buyer hereby acknowledges that it is the intent of Seller to effect an IRC §1031 tax deferred exchange, which will not delay the closing or cause additional expense to Buyer. Seller’s...

Post Tax Reform – Refresher Points for 1031 Exchanges

Tax Reform is behind us and we are happy to report that Section 1031 remains in the Tax Code. Now that investors and businesses have seen the details of the tax legislation, interest in structuring real estate transactions as 1031 tax deferred exchanges has seen great...

1031 Exchange Updates & Impacts for 2018

Be sure to read our current 1031 Exchange Trends for 2022. And read past trends  1031 Exchange Trends for 2021,  1031 Exchange Trends for 2020, 1031 Exchange Trends 2019,   1031 Exchange Trends for 2017 and 1031 Exchange Trends for 2016.   1031 Updates & Trends...

Impact of the Tax Cut and Jobs Act on Sec. 1031

The Tax Cut and Jobs Act was signed into law on December 22, 2017, and took effect on January 1, 2018.  It is a complex modification to the Internal Revenue Code that will take some time to fully understand, notwithstanding that it became effective just nine days...

The Effect of the New Tax Reform Bill on Real Estate

It appears that House and Senate have reconciled the differences between their respective tax bills and a vote on the final bill may occur by the end of this week.  According to the Washington based non-profit public policy organization, The Real Estate Roundtable,...

How Did 1031 Fare in Tax Reform?

To keep your holiday season merry and bright, here are key 1031 updates and reminders: How Did 1031 Fare in Tax Reform? It’s official. The tax reform bill was passed in Congress and will become law effective 2018 once signed by the President. The very good news is...

Where is Sec 1031 in the Tax Reform Bills?

Both the House and Senate versions of the proposed “Tax Cut and Jobs Act” would retain Section 1031 Like-Kind exchanges in present form, but only for real estate assets. Both would repeal Section 1031 for tangible and intangible personal property, art and...

Senate Tax Reform Bill Draft Released

The Senate released a “conceptual” draft of its Tax Reform bill last evening.  Like the House bill, the Senate proposal retains Section 1031 Like-Kind exchanges, in present form, for real estate assets only.  It repeals Section 1031 for tangible and intangible...

Proposed Like-Kind Exchange Limitation Raises Mismatch Concerns

By Nathan J. Richman,  Nov. 7, 2017 “The limitation on like-kind exchanges proposed in the House Republicans' tax reform bill raises several mismatch questions when compared to the temporary expensing provision regarding timing and property classification, potentially...

Tax Reform Bill Draft Released Today

Today (November 2, 2017), Congress released the draft tax reform bill. The “Tax Cuts and Jobs Act” preserves a crucial benefit for real-estate investors – the ability to make tax deferred like-kind exchanges for real estate under IRC Section 1031.   The bill would...

Happy 10-31?

Is 10-31’s Grim Reaper here on our most sacred day? The House’s new tax reform bill will be released November 1st and the Senate’s shortly thereafter. Tell Congress to NOT let 1031 Rest in Peace. Celebrate 10-31 Day by sending or re-sending letters. Take 60 seconds to...

NO TRICK: A Treat for Unsuccessful 1031 Exchanges!

updated May 2020 Be sure to read Tax Straddling – Pay Taxes in 2020 or 2021? 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...

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. ...

1031 Tax Reform Update

September 2017 Labor Day has come, bringing with it fond memories of summer vacations and days at the beach. How did IPX1031 spend its summer? Working to save §1031 like-kind exchanges, of course! Our President, John Wunderlich, and General Counsel, Suzanne Goldstein...

IPX1031 President Meets with Chairman Brady to Save 1031 Exchanges

Recently IPX1031 President, John Wunderlich, was summoned to a private meeting by US Representative Kevin Brady, Chair of the Ways and Means Committee, to discuss the benefits that 1031 exchanges provide for the economy. John asked Evan Liddiard, Senior Policy...

Tax Reform That Kills Like-Kind Swaps a Red Flag for Farmers

Reproduced with permission from Daily Tax Report, 104 DTR G-3 (June 1, 2017). Copyright 2017 by The Bureau of National Affairs, Inc. (800-372-1033) http://www.bna.com By Allyson Versprille | May 31, 2017 08:01PM ET | Bloomberg BNA IPX1031's General Counsel, Suzanne...

Introducing the New IPX1031.com

June 2017 IPX1031 (Investment Property Exchange Services, Inc.) - your 1031 Exchange solution provider - is thrilled to announce our brand new website! Come check out our easy to use site and find 1031 value adds geared directly to you! What’s NEW: Capital Gains...

IPX1031 President Meets with Chairman Brady to Save 1031 Exchanges

Recently our IPX1031 President, John Wunderlich, was summoned to a private meeting by US Representative Kevin Brady, Chair of the Ways and Means Committee, to discuss the benefits that 1031 exchanges provide for the economy. John asked Evan Liddiard, Senior Policy...

IPX1031 President Meets with Chairman Brady to Save 1031 Exchanges

Recently our IPX1031 President, John Wunderlich, was summoned to a private meeting by US Representative Kevin Brady, Chair of the Ways and Means Committee, to discuss the benefits that 1031 exchanges provide for the economy. John asked Evan Liddiard, Senior Policy...

Advocates Aim to Preserve Like-Kind Exchange in Tax Reform

by Emily L. Foster, Tax Analysts, Tax Notes, May 8, 2017, pp. 726-730 Practitioners and industry advocates aim to preserve the coveted like-kind exchange tax-deferred treatment that could be threatened if Congress considers revenue-raising ideas proposed by former...

Be Prepared If Your 1031 Transaction Needs to Go in Reverse

1031 Exchange transactions have been on the rise this year.  What’s also been trending is the sharp increase in the need for Reverse Exchanges.  With limited available inventory and market aggressiveness, or even just wanting to secure your ideal Replacement Property,...

Republican Tax Reform Plan Puts 1031 Exchanges On The Chopping Block

Travis Gonzalez, Bisnow In June 2016, while Americans were focused on the presidential election, a Republican task force unveiled a 35-page blueprint for tax reform. Dubbed “A Better Way,” the reform attempts to overhaul tax policy and to stimulate the economy through...

Ways & Means Considers Abolishing 1031 Exchanges

  Soon, 1031 exchanges may be eliminated under current tax reform proposals. While recent studies have shown 1031 exchanges benefit taxpayers, businesses and the economy, Representatives on the Ways and Means Committee are considering striking Section 1031 from...

House Chairman Moves to End 1031 Exchanges – ACT NOW

updated May 2020 The Tax Cut and Jobs Act was signed into law on December 22, 2017, and took effect on January 1, 2018. Read about the impact the Tax Cut and Jobs Act had on Sec. 1031 here. Soon, 1031 exchanges may be eliminated under current tax reform proposals....

Hope for Taxpayers Sailing Outside the Reverse Exchange Safe Harbor

A “reverse” exchange occurs when the taxpayer acquires the replacement property before transferring the relinquished property. A “pure” reverse exchange, where the taxpayer owns both the relinquished and replacement properties at the same time, is not permitted. As a...

1031 Exchange Trends for 2017

Be sure to read our current 1031 Exchange Trends for 2022. And read past trends  1031 Exchange Trends for 2021, 1031 Exchange Trends for 2020, 1031 Exchange Trends for 2019,  1031 Exchange Updates & Impacts 2018,  and 1031 Exchange Trends for 2016 January 2016...

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