Constructive Receipt and 1031 Exchanges
Wednesday, March 04
Following the rules of a 1031 exchange can be a relatively straightforward process. One of the key regulations of a 1031 exchange is that you, as the exchanger, cannot touch the proceeds from the sale of your property. You cannot take actual or constructive receipt of your funds. This catches so...
Remember to File for an Extension to Protect Your 1031 Exchange Period
Wednesday, January 29
For most taxpayers, this year's tax filing deadline will be April 15th, 2020. If you are in the beginning stages of a 1031 exchange, the normal exchange period of 180 days will be reduced if your surrendered property closed between October 19th and December 31st, 2019. Therefore, it is important ...
A Consolidation 1031 Exchange and Why You Need It
Tuesday, December 10
If you have several different investment properties, it may be beneficial for you to sell them and invest in a larger property with a consolidation 1031 exchange. If you have been focusing on single family rentals, for example, you may own quite a few smaller properties. But, this can leave you s...
3 Myths That Haunt 1031 Exchanges
Wednesday, October 30
Think tax-deferred 1031 Exchanges of real estate are too new, sketchy or scary to try? Every week, I talk to investors just like you who are surprised to learn that: 1. 1031 Exchanges have been around longer than IRAs and 401(k)s; 2. 1031 Exchanges are 100% legal; and, 3. 1031 Exchanges can be co...
Fixer Upper: Can Taxes Make Your Deal A Flip Or Flop?
Tuesday, October 15
Paying capital gains taxes does not really lend itself to the excitement and drama of popular fix and flip shows. But determining if your property will qualify for the tax deferral benefits of a 1031 Exchange should definitely factor into your real-world analysis. Avoiding tax hits as you transit...
Do I Need An Attorney For A 1031 Exchange?
Friday, September 06
The IRS statute requires that you use a qualified intermediary (QI) to perform your 1031 exchange. While it is possible for an attorney to provide this service, it doesn’t have to be an attorney and it can’t be an attorney you have utilized for any other matters. This is because the IRS statute a...