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: 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 […]
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 […]
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. […]
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 […]