Top Three Mistakes To Avoid In A 1031 Exchange
Monday, April 25
Section 1031 of the IRS Code is both a blessing and a curse. While it can offer potentially impressive tax-deferral benefits, it can also bring with it a lot of stress and uncertainty to catch the inexperienced 1031 investor off-guard. There are many pitfalls to avoid to ensure a successful excha...
1031 Exchange: Held for Sale vs. Investment
Friday, April 22
One of the key requirements for a real estate exchange to qualify under section 1031 for tax-deferral is that the property involved was held for either investment purposes or for productive use in trade or business. In many cases, this is a fairly straightforward proposition to prove. However, in...
What Is Securitized Real Estate?
Friday, April 22
For the non-professional investor, a phrase like “securitized real estate” may not be a familiar concept. However, it pays to learn about this type of investment, as it offers a unique set of benefits not found elsewhere.Securitized real estate is simply real estate that is packaged and sold as a...
Can You Do A 1031 Exchange Without A Qualified Intermediary?
Wednesday, April 20
In most 1031 exchanges, the use of a qualified intermediary is required because investors are relinquishing and replacing property with multiple other parties. For example, Investor A sells his relinquished property to Investor B, but then purchases replacement property from Investor C.In such ca...
The Rationale of Revenue Procedure 2002-22
Wednesday, April 20
Section 1031 of the Internal Revenue Service Code is one of the most generous, widely available provisions of the code, carving out an exception to the general rule that all gain or loss from the sale or disposition of property must be recognized. However, to ensure the veracity of a proposed 103...
Ownership Interests In 1031 Exchanges
Tuesday, April 19
A 1031 exchange can be a rewarding yet challenging process for the novice investor. The IRS code is vague and the caselaw interpreting it is inconsistent. One common issue that jeopardizes a qualifying exchange involves ownership.At its most basic, in order to qualify as a legitimate 1031 exchang...