The "Greater or Equal Value" Rule for 1031 Exchanges
Friday, September 09
As if there weren’t enough rules to follow when completing a valid 1031 exchange (45 days to identify replacement property, 180 days to close, etc.), the IRS throws another wrench into the works. It has to do with the value of the replacement property.In order for your exchange to be valid and co...
The Three Responsibilities of a Qualified Intermediary
Friday, September 09
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 an indispensable role throughout the transaction.Advises on rule complianceOne of the k...
Can I eliminate capital gains taxes altogether with a 1031 exchange?
Thursday, September 08
This is, by far, one of the most common questions I get asked when working with investors who want to complete a 1031 exchange. They may have only a limited knowledge of how an exchange works, but have heard through the grapevine that it is a great way to keep the tax man at bay when selling inve...
Don't Invalidate Your 1031 Exchange With These Common Errors
Thursday, September 08
Section 1031 of the IRS Code offers investors a great way to defer capital gains taxes on the sale of investment or business property. However, this helpful piece of tax legislation also brings with it many pitfalls waiting to trap the unwary investor.Misapplying IRS Timing RequirementsOne of the...
Can my easement interest qualify for a 1031 exchange?
Tuesday, September 06
Although section 1031 of the IRS code has been around since 1921, the concept of 1031 exchanges continues to evolve. And because the code is not crystal clear on some concepts, investors often seek guidance from the IRS – in the form of Private Letter Rulings – about non-traditional exchanges.One...
Tenancy in Common Explained
Sunday, September 04
Tenancy in Common (TIC) is a way for two or more individuals to have an undivided fractional ownership interest in a single piece of real property. With a TIC, each owner has individual rights and obligations related to the property. These rights equal the proportionate share of the owner’s inter...