Key Takeaways • A drop and swap 1031 exchange is a type of transaction that allows real estate investors to defer capital gains taxes on the profitable sale of an investment property as long as they reinvest the proceeds into … Read More
During rising mortgage rate environment, you may be requested by real estate buyers to assist them in the acquisition of your relinquished property with the financing. This means they are asking you to carry back an installment note or promissory … Read More
It is extremely important that you take depreciation and depreciation recapture issues into account when evaluating the various options available to you for your real estate investment planning. Depreciation issues are important considerations in the real estate investment equation, and … Read More
WHAT ABOUT REFINANCING BEFORE OR AFTER AN EXCHANGE? The primary objective of most Section 1031 exchanges is to move an investment from one property to another without incurring a tax liability. In other words, take your money out of this … Read More
1031 Exchange – Related Party Rules Exchange of property between related parties. There is a special rule for exchanges between related parties (IRC §1031(f)) which requires related taxpayers exchanging property with each other to hold the exchanged property for at … Read More
Can we convert our investment property after completing a 1031 exchange into our Primary Residence? Taxpayers owning rental property acquired in a 1031 exchange may convert the property from a rental to their primary residence. When the decision is made … Read More
Structuring 1031 Exchange with improvements Adding necessary improvements into your 1031 exchange allows the investor to construct the “perfect” replacement property in order to acquire precisely what is desired. Improvements can be as simple as repairs to existing structures or … Read More
1031 Reverse Exchange Overview If you find a property you would like to acquire before you sell your current property, a 1031 Reverse Exchange can save you thousands of dollars in capital gains tax. 1031 Exchange transactions, especially Reverse 1031 … Read More
1031 Construction Exchange A build to suit 1031 exchange, a type of a 1031 construction exchange, is used to make improvements to the replacement property. An example of a 1031 construction exchange is the sale of the commercial property and replacing it … Read More
What is a Delayed exchange? The most common exchange structure is the delayed exchange (aka: forward exchange) in which the Relinquished Property is sold, the proceeds are deposited into your exchange account, and are subsequently used to acquire Replacement Property … Read More