Six Myths About 1031 Exchanges - Part 3
Friday, September 30
If you’ve been thinking about a 1031 exchange, but are confused by the seemingly continuous flow of misinformation out there, struggle no more. We’ve compiled some of the most common myths surrounding these great tax deferral transactions here and here. Today we offer some final thoughts.Resident...
Six Myths About 1031 Exchanges - Part 2
Thursday, September 29
So you want to do a 1031 exchange, but you’re not sure where to start. You’ve heard a lot of crazy things about this great tax-deferral strategy, so you’re just not sure. In a recent post, we’ve taken the guesswork out of 1031 exchanges by debunking some of the most common myths. Read on for a fe...
Six Myths About 1031 Exchanges - Part 1
Wednesday, September 28
Today it seems like everyone is doing a 1031 exchange. And why not? Deferring capital gains taxes on the sale of investment or business property can be very lucrative for an investor. They can take that money and reinvest it in bigger and better properties, and build their portfolio faster.Unfort...
Don't Forget About Recaptured Depreciation In Your 1031 Exchange
Tuesday, September 27
Section #1031 of the #IRS Code permits investors to defer payment of tax on the gain from the sale of property held for productive use in business, trade or investment. This is true so long as the property is exchanged for a “like kind” asset (or assets). It’s a great tax-deferral strategy, but t...
Not Every 1031 Exchange Goes As Planned
Friday, September 23
A recent case came out of U.S. Tax Court that illustrates the dangers of structuring complex 1031 exchanges to avoid significant capital gains taxes. It also illustrates the reality that even the top tier accounting and law firms can make a misstep when it comes to advising on the more nuanced tr...
What are the disadvantages of a 1031 exchange?
Thursday, September 22
While a 1031 exchange can be a great tool to defer capital gains, it doesn’t come without at least one disadvantage.When you engage in a 1031 exchange, there is a reduced basis for depreciation on the replacement property. The tax basis of the replacement property is essentially the purchase pric...