Mixed-Use Exchanges / When 1031 and 121 Combine

What can you do if part of the property you are selling is your primary residence and another part is investment real estate?  One of the options to consider is doing a 1031 exchange on the investment piece and taking advantage of the gain exclusion on the primary residence portion.  The IRS addressed the tax […]

Year-End Strategies: 1031s that Straddle Tax Years

The benefits of using a 1031 exchange when selling investment property are well known. But how do you maximize gain deferral when timing issues—like the end of a tax year—come into play?  While there are some pitfalls to avoid when executing a 1031 exchange that straddles tax years, there are also some opportunities. Let’s examine the […]

1031 Strategies: Refinancing Around An Exchange

For investors, one of the main reasons to use a 1031 exchange is deferring any tax due so that any return they earn can be on all of their equity going forward. For the gain deferral to be maximized, the exchange rules require that the purchase price of the replacement property be the same or […]

1031 Strategies: Converting Investment Property into Your Dream Retirement Home

A number of investors own both a primary residence and an investment property or two. They often have an interest in selling one and transitioning into the other, while limiting the tax liability through smart tax planning. While the IRS has issued direct guidance on this subject, there is still confusion among many investors about […]

Top 10 Reasons to 1031 Exchange

#10  To consolidate or diversify real estate investments. By selling multiple properties and buying one larger replacement property, you lessen management responsibilities and may also be able to geographically consolidate property. For those investors who own one larger property, exchanging can allow them to sell and diversify into other types or locations without having to […]

1031 Tips: Being Brilliant at the Basics

Just like in baseball, when planning for a 1031 exchange, understanding certain basics will help you have a successful turn at bat. Being brilliant at the basics will help you hit a home run. With a 1031, your success primarily hinges on having a basic understanding of this transaction and paying attention to certain key factors. To […]

What Qualifies for 1031? Investment Property v. Inventory

When it comes to qualifying for a 1031 exchange, not all investment property is created equal. IRS Code Section 1031 allows the exchange of property that is “held for investment.” Within this context, the meaning of the phrase “held for investment” is very specific. Property held for investment does not receive the same tax treatment […]

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