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1031 Strategies: The Puzzle of a Partnership

We all know that an individual or an entity can sell an investment property and complete a 1031 exchange, indefinitely deferring any tax due. But what if the property being sold is owned by a partnership or multi-member LLC and one or more of the partners wants to go their own way? In this scenario, is […]

Compounding – 1031 Builds Wealth

While many investors turn to a 1031 exchange because they don’t want to pay the tax on the sale of investment property, few stop to consider the wealth building potential this tool offers. By deferring the tax and keeping your equity working, you gain the benefit of compounding your money. Einstein was purported to have […]

Partial Exchanges- It’s Not “All or Nothing”

A partial exchange, whether planned or by happenstance, can be a viable exchange strategy.  The words “can be” imply that there are circumstances when this would not yield a positive outcome.  A partial exchange will result in some taxable gain being triggered; however, it could also mean having to pay all the tax- Ouch!  Understanding […]

Reverse Exchange Strategies – It’s All About Time

Most investors know that in order to complete a successful 1031 exchange, they sell their relinquished property and have 180 days to buy the replacement property.  What can be done when the perfect replacement property is found and must be acquired before the existing property can be sold? Must all the benefits of a 1031 […]

Tick-Tock: Minding the Clock in 1031 Exchanges

One of the most common questions we hear is “How long must I own a property before I can do at 1031 exchange?” Unfortunately, this is a pivotal question that cannot be answered simply.  Section 1031 of the Internal Revenue Code states that property qualified for an exchange must be “held for investment or used in a […]

1033 & 1031: Differences and Similarities

A 1031 exchange is an excellent tool to use to defer taxes indefinitely that might otherwise be due on the sale of investment property. Similarly, there is also tax relief available to investors when their property is acquired by a governmental authority or destroyed. The rules governing these events are covered under Section 1033 of […]

Successful 1031 Strategies for Transitions: Marriage, Death & Divorce

Few events do more to change a person’s course in life than marriage, death or divorce. Issues can arise when one of these events comes up in the middle of a 1031, determining its success or failure. Thankfully, as blessed or as difficult as circumstances surrounding these life changes can be, through careful tax planning, […]

1031 Strategies: How a Construction Exchange Can Save the Day

In today’s seller-friendly environment, some exchangers have determined that they can create value by finding an attractively priced replacement property or lot that can be improved. They conclude that paying a lower acquisition price plus the cost of improvements is a better choice than competing with all of the buyers in the traditional investment market.  […]

Take Action – Help Protect 1031

Take Action- Help Protect 1031 Many of you may be aware the White House is proposing to cap 1031 at $500,000.00 of gain deferral. Over the decades, the Executive Branch has asked Congress for changes in a variety of tax policy areas.  Sometimes Congress agrees and makes changes and sometimes not.  It is important to remember […]

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