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 […]
Info to Go: The 1031 Like-Kind Requirement
There are several elements that must be satisfied in order to qualify for the tax deferral that a 1031 offers. One requirement is the property being sold and the property being acquired must be “like-kind”. Despite the increased number of 1031 exchanges being done, this topic is still one of the most misunderstood aspects of exchanging. […]
If I sell rental property can I buy land to complete my 1031?
Yes, both are “like-kind.” However, land is not a depreciable asset, so be aware that you will trigger some tax consequence on the recapture of the depreciation taken on the improved property. Depreciation taken on a relinquished property cannot be rolled forward into a non-depreciable replacement property.