The Top Ten 1031 Exchange Misconceptions

Sometimes, the best intentions don’t quite get us to the finish line, but can leave us in a very painful spot. It’s best to steer clear of the pitfalls that can derail an exchange or limit the tax that can be deferred.  With this goal in mind, we introduce our Top Ten 1031 Exchange Misconceptions: #1- If […]

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 […]

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 […]

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, […]

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.  […]

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 […]

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