How Does The IRS Determine “Held For Investment” In A 1031 Exchange?
Wednesday, April 06
One of the key requirements of a valid 1031 exchange is that the relinquished and replacement properties were “held for business or investment” purposes. Unfortunately, the IRS Code does not offer a brightline rule with regards to a period of time that satisfies this requirement.Instead, time is ...
Requirements Of A 1031 Exchange
Tuesday, April 05
A 1031 Exchange can be a powerful tool to create additional wealth, as the investor keeps money that would ordinarily be paid in taxes. However, not every property transaction qualifies as a 1031 Exchange. There are four basic rules that govern every 1031 Exchange: The property in question must ...
Risks of Tenancy In Common
Monday, April 04
Although very popular, Tenancy In Common ownership presents a unique set of challenges that any investor should thoroughly consider beforehand. Beyond the typical risks associated with investing in real estate, when ownership involves multiple investors there is always the risk of conflict or dis...
Types of 1031 Exchanges
Monday, April 04
When it comes to 1031 Exchanges, it is sometimes obvious which type is suitable for your situation. Other times, it can be confusing as to how – or even if – a property transaction can qualify as an exchange. A qualified intermediary with experience in all varieties of 1031 Exchanges can help you...
Benefits Of A Tenancy In Common
Friday, April 01
One of the advantage of Tenancy In Common ownership of investment property is that the individual investors each maintain the ability to have a say in the day-to-day operation of the property, including when and under what terms to eventually sell the investment. Contrast this to Delaware Statuto...
1031 Exchange: Don't Forget Recaptured Depreciation
Thursday, March 31
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 so long as the property is exchanged for a “like kind” asset (or assets). While this can be a powerful tax-deferral strategy, there...