Exchanging Thoughts

Federally Declared Disaster Extensions for Victims of Wildfires or Natural Disasters

Posted by Margo McDonnell, CRE, CES® on Mon, Nov 16, 2020

If you are in the unfortunate situation of being affected by the wildfires in Oregon, we send our heartfelt condolences to you. The Oregon wildfires are now a federally declared natural disaster, currently affecting those in Clackamas, Douglas, Jackson, Klamath, Lane, Lincoln, Linn and Marion counties.

Read More

Topics: 1031 exchange extensions, 1031 disaster extensions, tax-deferred exchanges, 1031 exchanges, investment property, Federally Declared Disasters

The Interplay of 1031 and Personal Residence Sales

Posted by Paul G. Neiffer, CPA on Wed, Jul 15, 2020

Many investors sell investment property that includes their personal residence. We see this in many farm operations where the house is located on the farm. Also, many city dwellers recently converted their personal residence into a combination of rental property and their home.

Read More

Topics: section 121 exclusion, section 1031, 1031 Exchange, personal residence, rental property

DSTs: An Alternative 1031 Replacement Property Option

Posted by Margo McDonnell on Tue, May 26, 2020

Owners of appreciated real estate face tough decisions: (1) hold onto a property that may not be working for them anymore so they don’t have to pay the high tax liabilities associated with selling; (2) sell and pay the capital gains, 25% depreciation recapture and possibly the 3.8% Net Investment Income Tax; or (3) complete a 1031 exchange, defer the gain and reinvest all proceeds into more desirable replacement property. For those investors exchanging, they can buy traditional fee interest in property or an investment vehicle known as a Delaware Statutory Trust (DST). Regardless, all of the 1031 exchange rules and timelines remain the sale. The DST is simply a different replacement property option.

Read More

Topics: 1031 exchanges, 1031 Replacement property, Revenue Ruling 2004-86, Delaware Statutory Trust (DST), Real Estate Investing, Appreciated Property

CARES Act and Rev. Proc 2022-22 Usher in Much Needed Relief

Posted by Bruce Johnson, Capstan Tax Strategies on Mon, Apr 27, 2020

On Friday March 27th, the President signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) into law. This $2 trillion dollar stimulus bill will provide relief to individuals, businesses, and state and local governments, and will bolster an economy gravely shaken by the unprecedented impact of the Coronavirus.

Read More

Topics: 1031 Exchange, CARES Act, Qualified Improvement Property, Tax Cuts & Jobs Act, Coronavirus Aid Relief, Taxes

California Drop and Swap: Substance Over Form

Posted by Laura Markham, JD on Fri, Apr 24, 2020

The Internal Revenue Code (IRC) section 1031 requires that the same taxpayer who relinquished property also take ownership of replacement property in a like kind exchange. Partnerships, corporations, LLCs, and all their various structures (hereafter “structure/entity”) are considered an individual “taxpayer” in the eyes of the IRC; not the individual members, shareholders, partners, etc. (collectively “members/partners”).

Read More

Topics: 1031 exchange rules, Drop & Swap, Partnerships

Know Where Your State Stands

Posted by Ellie Trovato on Tue, Jan 22, 2019

A tax-deferred exchange allows you to defer federal capital gain taxes when like-kind real property within the exchange timeline. While most states with an income tax regime recognize a 1031 exchange and allow you to defer the state gain as well as the federal gain there is one state that does not. This Tuesday Tip looks at state requirements in a 1031 exchange.

Read More

Topics: Role of Qualified Intermediary, 1031 non-resident withholding tax, 1031 exchanges, 1031 Replacement property

It's All in the Math with 30 Year Leases

Posted by Ellie Trovato on Mon, Jan 21, 2019

When you think of a tax-deferred exchange, you often think of like-kind exchanges and what qualifies
as like-kind. This More, More Monday we will discuss 30 year leases, an often overlooked property that qualifies as like-kind in a 1031 exchange.

Read More

Topics: 1031 like-kind property, 1031 exchanges, 30 Year Leases

The Power of 1031 Exchanges

Posted by Ellie Trovato on Fri, Jan 18, 2019

We have discussed many of the benefits of a tax-deferred exchange but what can a 1031 exchange really do for you? This Friday Free for All will provide an example of the true power of a 1031 tax-deferred exchange. Let’s look at a specific scenario and how a 1031 exchange can benefit the seller.

Read More

Topics: tax consequences of a 1031 exchange, 1031 exchanges, 1031 Exchange Benefits

Going Back to Basics

Posted by Ellie Trovato on Fri, Jun 29, 2018

This Friday Free for All we will go back to basics. We will look at 1031 tax-deferred exchanges, what they are, their benefits, how they work and the rules involved.

Read More

Topics: like-kind property, benefits of 1031 exchange, 1031 exchanges, 45-Day Identification Period, Same Taxpayer Requirement

Thankful for Your Advisors

Posted by Ellie Trovato on Thu, Jun 28, 2018

We recently purchased a new home and our real estate agent was a key part of the process. Whenever buying or selling a property, advisors such as your real estate agent and accountant are crucial. This Thankful Thursday, we discuss the role of your professional advisors and why they are an important part of your 1031 tax-deferred exchange.

Read More

Topics: tax consequences of a 1031 exchange, 1031 exchange process, Qualified Intermediary (QI), 1031 Exchange