Is Section 1031 on the New Administration's Chopping Block?
Wednesday, March 15
Even before November’s surprise election results were known, real estate investors were keeping a wary eye on the future of Section #1031 of the IRS Code. The Obama administration had sought caps on transactions, and then-candidate Clinton had done the same. But it was the ultimate victor, Trump,...
Avoid This Common 1031 Exchange Error
Saturday, March 11
One common scenario I see in my work as a qualified intermediary is property subject to a #1031 exchange being held by co-owners. The type of ownership varies from transaction to transaction. For example, some relinquished properties are owned by spouses in their individual capacity. Others are o...
Can You Ever Release Funds Early in a 1031 Exchange?
Friday, March 10
As an investor pursuing a #1031 exchange, your goal is to defer capital gains on the transactions. Of course, investors are only human, and life sometimes throws a curve ball that nobody anticipated. In some instances, like the illness of the investor or a substantial change of circumstances, the...
Limitations on Owners in Fractional Real Estate Ownership
Wednesday, March 08
If you’re an investor who’s successfully used the power of a #1031 exchange to reduce your capital gains #tax liability and grow your portfolio, you may be wondering “what’s next?” After all, the tax savings is great and you’ve steadily increased the value of your properties along the way.As a sa...
What to Do When Your 1031 Exchange Includes Personal Property
Tuesday, March 07
One of the cardinal rules of any #1031 exchange is that the relinquished property and replacement property must be “like kind.” Unfortunately, when real estate is involved in the exchange, there is a fairly common issue that many investors unwittingly face – the involvement of personal property i...
Keep Your 1031 Exchange Safe with the Right QI
Sunday, March 05
To successfully complete a #1031 exchange, you will need to avoid having actual or constructive receipt of the sale proceeds of the relinquished property during the pendency of the exchange. The way to do this is with use of a qualified intermediary. They will hold funds and title to avoid any vi...