Exchanging Thoughts

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.

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

Making Your Home Work for You

Posted by Ellie Trovato on Wed, Jun 27, 2018

I recently purchased a new home and have started thinking about long-term investment goals including eventually converting my home into a rental property or even keeping it as a second home. There is another tax strategy that I could take advantage of down the road. Today’s Wealth Building Wednesday discusses the principal residence exclusion which allows homeowners to have a gain on the sale of their primary residence.

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Topics: 121 primary residence exclusion, capital gains, 1031 Exchange, 1031 Replacement property

Dig Below the Surface for More Like-Kind Options

Posted by Ellie Trovato on Mon, Jun 25, 2018

When Exchangers call our 1031 CORP. Exchange Team they often ask us what assets qualify as like-kind replacement property in a tax-deferred exchange. Rental units, office buildings, duplexes and warehouses are typically properties that come to mind. This More, More Monday addresses oil, gas and mineral rights, lesser-known assets that are growing in popularity among Exchangers.

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Topics: 1031 Exchange, Minerals, 1031 exchange of gas & oil royalties, GMO, Like-kind requirement

Time Extensions for Federally Declared Disasters

Posted by Ellie Trovato on Thu, May 31, 2018

With subtropical storm Alberto blasting the southeastern corner of the U.S and hurricane season right around the corner, it is important to know how Mother Nature’s unpredictability can affect your tax deferred exchange. Today’s Thankful Thursday addresses Section 17 of Revenue Procedure 2007-56 which provides extensions to exchange deadlines if you are affected by a federally declared disaster.

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Topics: 1031 Exchange, 45-Day Identification Period, identifying 1031 replacement property, Federally Declared Disasters, Rev Proc 2007-56

Step by Step, Keeping the Exchange Process Simple for You

Posted by Ellie Trovato on Fri, May 18, 2018

Every day we receive calls about how a 1031 tax-deferred exchange works and what steps are involved. On this Friday Free for All, I want to take a look at the exchange process and how simple it really is. In fact, it is simply the sale of business use or investment real property followed by the purchase of like-kind property linked together by paperwork.

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Topics: section 1031, 1031 exchange process, 1031 Exchange, 1031 like-kind property, tax-deferred exchanges

Personal Property Repealed from Section 1031….But Not Yet!

Posted by Margo McDonnell on Tue, Dec 26, 2017

After talking about it since before the 2016 elections, Congress passed the Republican tax reform bill, HR.1, the "Tax Cuts and Jobs Act" on Wednesday, December 20, 2017 and President Donald Trump signed the bill into law on December 22, 2017. The legislation will take effect January 1, 2018.

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Topics: personal property 1031 exchanges, personal property exchange, 1031 Exchange, 1031 Tax Updates, Tax Reform

Use Section 1031 to Accomplish your 2017 Goals

Posted by Margo McDonnell on Wed, Dec 21, 2016

As the year winds down, many of us are beginning our annual list of resolutions and evaluating our goals.  For some, our goals might include the purchase of a vacation home, diversify our real estate portfolio, increase our revenue stream, retire and maybe even find more time to enjoy life.  Yes, they all sound great but for those that currently own investment property, a 1031 exchange may help you accomplish these goals!

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Topics: section 1031, 1031 Exchange

With Patience, Vacation Home Owners Score Big with 1031 Exchanges

Posted by Margo McDonnell on Thu, Aug 09, 2012

Section 1031 exchanges are for properties held for investment or for use in a trade or business. Personal use properties do not qualify even though everyone would likely agree that virtually all real estate is acquired for future appreciation. Under Section 121, home owners can qualify for a $250,000 ($500,000, if married filing jointly) exclusion when selling property used as their primary residence for at least 24 of the last 60 months. Unfortunately, for vacation home owners, there is no easy way out unless you have time and patience to implement a plan.

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Topics: 1031 Exchange, vacation home exchanges, Rev Proc 2008-16

Portability: It’s a Great Thing

Posted by Margo McDonnell on Wed, Aug 08, 2012

When it comes to taxes, the term “portability” does not sound like a good thing.  As part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (The “ACT”), portability is a GREAT thing!  It is the concept in which a surviving spouse is allowed to use his/her deceased spouse’s unused estate tax exclusion.

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Topics: portability, deferred gain forgiven, 1031 Exchange

Earnest Money Deposits for 1031 Replacement Properties

Posted by Margo McDonnell on Tue, Aug 07, 2012

We are often asked how the earnest money deposit for the replacement property in a 1031 tax-deferred exchange should be handled. If 1031 CORP. is holding the exchange funds, the deposit can be withdrawn from your exchange account provided the Agreement of Sale with the Seller of the replacement property is assigned to 1031 CORP., as your the Qualified Intermediary. The Assignment is often included when the Agreement of Sale is signed but if not, it can be signed by the Seller at any time in order to have the deposit paid from the exchange account. If for whatever reason, the Assignment cannot be signed by the Seller, 1031 CORP. can prepare a written notification of the assignment and have it delivered to the Seller. The notification will include a hold harmless clause assuring the Seller the 1031 exchange will not affect the Seller in any way or increase the Seller’s costs. 

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Topics: earnest money deposits on 1031 replacement propert, 1031 deposits, 1031 Exchange