All Forum Posts by: Karolis Matulis

You can certainly do a reverse exchange. You just need to involve a intermediary right off the bat. The purchased property would be "held" with the intermediary until you sell the original property completing the exchange. You would still have to complete the exchange within the 180 day window. The 45 day limitation generally refers to identifying replacement properties which becomes moot since you start off with the purchase of the replacement. 

1. Traditionally a sale of a property has to go 100% to a qualified intermediary. To avoid incurring any capital gains tax (and depreciation recapture) all of the sale proceeds need to be re-invested in a like-kind exchange property (or properties). You also need to be careful to make sure you are increasing equity in the replacement and utilizing all proceeds (or incur sufficient exchange expenses to cover any imbalance).

2. I'm not sure I understand the fact pattern described. You are exchanging a rental property for a vacation property and want to know if that is eligible for deferred income treatment?

Hey All,

Just wanting to say hello. I am a NJ based CPA, I work with a lot of big real estate clients handling all kinds of complex tax issues (1031s, transfers etc). 

My professional experience has opened my eyes on the potential of real estate and I am looking to slowly invest myself. BP seems like a great place for learning. While I'm learning the ropes of investing, I'll be contributing my tax knowledge in exchange :). 

Thanks,

Karolis