IPX1031® Insight Blog
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: For the latest data, please take a look at our Tax Procrastinators 2024 report. 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 Americans may want to...
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...
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...
IPX1031 President Wins FEA President’s Award
IPX1031 is thrilled to congratulate John Wunderlich, IPX1031 President, EVP and Regional Manager of FNF, for being honored with the Federation of Exchange Accommodators (FEA) 2019 President's Award for distinguished service to the FEA. The FEA is the Professional...
FNF IPX1031 Mid Year Review
IPX1031, the nation’s largest 1031 Intermediary with the most safeguards to protect your 1031 funds, is proud to part of the Fortune 500 FNF family of companies. See the newly released FNF Mid Year 2019 performance numbers here (or click on image) IPX1031. The best...
How to Buy Your Vacation Home with a 1031 Exchange
With constant, busy lives, the dream for many Americans is to find that special place to get away from it all. It is not surprising that the number of vacation homes has grown 29% nationwide since 2009. Did you know that you can sell your investment real estate and...
Rev. Proc. 2008-16
Part III Administrative, Procedural, and Miscellaneous 26 CFR 601.105: Examination of returns and claims for refund, credit, or abatement; determination of correct tax liability. (Also Part 1, §§ 280A, 1031). Rev. Proc. 2008-16 SECTION 1. PURPOSE This revenue...
Where the Vacation Home Market Has Grown the Most
Where has the vacation home market grown the most? We were curious to find out, so we analyzed the total number of vacation homes in every state and calculated the overall growth since 2009. Surprisingly, it’s not Florida or California, but Montana that tops the list...
Data Reveals Vacation Home Hot Spots Across the Country
Whether it’s a cabin in the woods or a beachside bungalow, vacation homes come in all shapes, sizes and locations. We took a closer look at vacation home destinations across the country to find which cities and towns have the most vacation homes. We also analyzed the...
Survey: Do Airbnb Guests Trust Their Hosts?
Update: 2023 Survey Provides New Insights on Cameras in Vacation Rental Properties. First impressions can go a long way. When it comes to owning and operating a vacation investment property like an Airbnb, the guest’s first impression of you as a host can either make...
Survey: What Guests Want in an Airbnb
Vacation rental company Airbnb has provided property owners with the opportunity to turn their houses, condominiums and other types of real estate into lucrative investment properties. However, the key to getting a strong return on investment and keeping your property...
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...
Tax Notes: Basis Limit in Passthrough Law Shouldn’t Hinder Like-Kind Exchanges
Basis Limit in Passthrough Law Shouldn’t Hinder Like-Kind Exchanges by Eric Yauch, Tax Notes, July 23, 2018, p. 560. Regulators shouldn’t interpret a passthrough deduction provision to create a double burden on taxpayers that engage in like-kind exchanges, such as...
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...
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