Why Can’t You Send Me My Money?
The 1031 process has a number of rules and regulations critical to its success. By using the services of a qualified intermediary, most exchangers are blessedly unaware of a number of them as the needed documents have already been crafted and tailored to abide by the rules. However, frustration can arise when exchangers misunderstand the […]
Relation Complication: 1031s with Related Parties
One question that often arises in our conversations about 1031 exchanges is if related parties can play a role. Often, exchangers want to know if they can sell to or buy a property from a family member, related entity, or trust that they control and still have a valid exchange. In a standard 1031, the taxpayer […]
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, […]
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 […]
The Benefits of 1031 Exchanges vs Qualified Opportunity Zone Funds
Qualified Opportunity Zone (or “QOZ”) fund investments are a hot topic and have been receiving a lot of press lately. Many new offerings have been appearing, heavily marketed as a more beneficial vehicle than a 1031 exchange for deferring gain and maximizing returns. A closer look shows that while these investments may offer some advantages […]
Mirror, Mirror: The Same Taxpayer Rule in 1031 Exchanges
One of the basic rules to complete a successful 1031 exchange is that the taxpayer selling the relinquished property must be the same taxpayer that buys the replacement property. There are times, however, when the party selling the relinquished property wants or needs to make a change in how the replacement property will be held. […]
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 […]
Did Someone Yell “TIMBER”!
When considering a 1031 exchange on the sale of timberland, there are a number of factors that need to be examined. Timber transactions may vary from simply selling a piece of land that has timber standing on it, to selling the rights to harvest, or just to leasing the land. The specific rights being granted– […]
1031 exchanging into oil, gas and mineral rights
There are other types of property that can be fractionalized besides traditional real estate that still work in the context of a 1031 exchange. With a renewed focus on energy, many investors would like to capitalize on all the activity in that sector of the market. With the right vehicle, it is possible to move […]