Who Cannot Be A Qualified Intermediary For Your 1031 Exchange?
Sunday, September 04
Recently we discussed the role of the Qualified Intermediary and how to select the right one for your 1031 exchange. The QI plays an important role in the process, and he or she is the individual who will temporarily hold the sale proceeds until closing occurs on the replacement property. In the ...
How to Make Your Primary Residence Eligible for a 1031 Exchange
Saturday, September 03
Section 1031 of the IRS code explicitly prohibits private residences from eligibility for a 1031 exchange. So what can you do if your home has extensive equity and you want to avoid capital gains tax liability when you sell?One option is, of course, to use the 250,000/500,000 exclusion permitted ...
What Can (and Can't) Be Traded in a 1031 Exchange?
Thursday, September 01
Although the provisions of Section 1031 have been around for a long time, there are still investors who are not familiar with the tax savings offered by this powerful piece of tax code. And even for those investors who have heard of a 1031 exchange, their knowledge rarely goes beyond the basics.I...
Picking the Right Qualified Intermediary for Your 1031 Exchange
Thursday, September 01
One of the key players of every valid 1031 exchange will be the qualified intermediary (often referred to as the “QI”). This is the individual who will hold proceeds from the sale of your relinquished property until you close on your replacement property. In the case of a reverse exchange, he or ...
Am I limited to tangible real property in a 1031 exchange?
Wednesday, August 31
The simple answer is…no!Although many 1031 exchanges will involve a basic exchange of one parcel of real property for another “like-kind” property, there are many other property interests that also qualify.In fact, the IRS code is rather generous in what it allows in terms of other real estate in...
What's the 2 Year Holding Rule for 1031 Exchanges?
Saturday, August 27
While most 1031 exchanges will occur between two unrelated (and unfamiliar) parties, sometimes relatives wish to take advantage of the tax savings, too. The IRS does not prohibit this, but does impose special rules on such transactions.These special rules were implemented by the IRS to try and cu...