What Is A Reverse 1031 Exchange?
Wednesday, March 23
As the name implies, a reverse 1031 exchange is the opposite of a standard 1031 exchange. It occurs when an investor locates and acquires replacement property before he or she sells the relinquished property. This type of exchange is designed to allow investors to take advantage of an excellent i...
1031 Exchange: The 180-Day Rule
Tuesday, March 22
Completing a successful 1031 exchange requires compliance with strict time requirements imposed by the IRS. One that sometimes catches an investor off-guard is the 180-Day Rule for Receipt of Replacement Property.This rule works in conjunction with the 45-Day Rule for Identification, and governs ...
1031 Exchange: What Is The 45-Day Rule?
Monday, March 21
Not every 1031 exchange involves property that is simultaneously relinquished and replaced. In fact, in a majority of exchanges an investor knows he or she wants to sell an existing property but has not yet found a suitable, like-kind replacement property. In these cases, a 1031 exchange can stil...
Intent Matters In A 1031 Exchange
Friday, March 18
When it comes to satisfying the IRS as to the legitimacy of a 1031 exchange, the actions of the investor before and after a transaction will often be scrutinized. In order to qualify for a 1031 exchange, both the relinquished property and replacement property must have been acquired and “held for...
What Property Qualifies For A 1031 Exchange?
Thursday, March 17
As more and more non-professional investors move into the world of 1031 exchanges, one of the most common questions asked is what property qualifies under the tax code. Too many unwary investors have had their 1031 exchange declined by the IRS for failing to satisfy this basic requirement.Step on...
1031 Exchange: Understanding "Related Parties"
Wednesday, March 16
The IRS carefully scrutinizes every 1031 exchange. However, when it comes to exchanges between “related parties,” the IRS implements an extra level of restrictions.Why? The IRS implemented special rules related to “related parties” to combat widespread abuse the IRS believed existed when certain ...