What is an Improvement Exchange?
Wednesday, December 14
So you are an investor considering a #1031 exchange. You have existing property you no longer want or need, but are having a hard time finding the perfect replacement property. You’ve seen several possibilities, but each had drawbacks that killed the deal. Are there any options open to you that w...
What Does the Qualified Intermediary Do, Anyway?
Tuesday, December 13
The role of the Qualified Intermediary is essential to completing a successful #1031 exchange. While the exchange process itself is relatively straightforward (once you understand the basic rules), the #QI plays is an indispensable part of almost every exchange.But what does this key player do, e...
What is Constructive Receipt in a 1031 Exchange?
Monday, December 12
One area that catches potential exchangers off guard (and torpedoes the exchange altogether) is the idea of constructive receipt. While actual receipt is easy to identify – the exchanger directly receives the sale proceeds from the relinquished property.It doesn’t matter what form the funds take ...
How is 2017 Shaping Up for 1031 Exchange Legislation?
Saturday, December 10
As 2016 draws to the close and the country prepares for a sea change in leadership in Washington, DC, one topic that remains on the radar of investors across the country is the status of section #1031 of the U.S. Tax Code.While limitations to the breadth of 1031 exchanges under the current #tax c...
What is the Reinvestment Requirement in a 1031 Exchange?
Friday, December 09
Investors flock to #1031 exchanges for the beneficial tax deferral of capital gains. But how, exactly, can you be sure that you will be able to defer 100% of your capital gains tax liability on your transactions?The IRS has two requirements to ensure 100% tax deferral: You must reinvest all the ...
Can Oil, Gas & Mineral Rights Be Part of a 1031 Exchange?
Wednesday, December 07
While most 1031 exchanges involve real property, there are occasions when investors inquire about more esoteric property rights, like rights to natural resources. The answer to whether these type of rights qualify under section 1031 is both straightforward and complex.It starts by determining how...