Do you have any real property used in a trade or business or for investment that you are currently selling? If so, have you thought of utilizing a 1031 Exchange? A 1031 Exchange is a great strategy and is one of the most powerful tools for any real estate investor. With a 1031 Exchange, a Read More
IMPORTANT INFORMATION: Investors Beginning An Exchange After October 17, 2022 Do Not File Your 2022 Income Tax Return Until Your Exchange Has Been Fully Completed 1IRC Section 1031, U.S. Treasury Regulations section 1.1031(k)-1(b)(ii), requires that taxpayers acquire all replacement property by the earlier of 180 days from the sale of the relinquished property or the Read More
What is a 1031 Exchange? Individuals and companies who sell appreciated property (real estate) are subject to capital gains tax under the Internal Revenue Code. Under IRS’s 1031 Exchange rules, however, an exchange is not considered to be a sale and no capital gain is recognized or subject to tax. The basis of the relinquished Read More
1031 Exchange Qualified Property The property you plan to dispose of in your 1031 Exchange is referred to as the relinquished property. The property you wish to acquire to complete your 1031 Exchange is called the replacement property. In a single exchange, you may have more than one relinquished property and/or more than one replacement Read More
In a regular 1031 Exchange (sometimes referred to as a “forward exchange”), after you close the sale of your relinquished property, you must identify your replacement property within 45 days and close the purchase of your replacement property the earlier of the due date of your tax return for the year of sale or 180 Read More
1031 Replacement Property Alternatives There are four kinds of replacement properties for real estate 1031 exchanges: traditional properties, whole ownership triple net (NNN) properties, Delaware Statutory Trust (DST) properties and 1031 qualified oil & gas interests. Traditional Properties Traditional properties are the typical rental properties and vacant land that you can find on your own or Read More