Exchanging Thoughts

Understanding the Same Taxpayer Rule

Posted by Ellie Trovato on Fri, Jun 01, 2018

This Friday Free for All we will discuss an important rule in a 1031 tax deferred exchange: the same taxpayer requirement.

Read More

Topics: 1031 exchange same taxpayer; 1031 same owner rule, Same Taxpayer Requirement, 1031 exchange assignment; 1031 exchange rules, tax consequences of a 1031 exchange, 1031 exchange rules

Putting a 1031 Replacement Property under Contract

Posted by Margo McDonnell on Tue, Jan 15, 2013

This Tuesday Tip looks at 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 is holding the exchange funds, the deposit can be withdrawn from your exchange account provided the Agreement of Sale with the seller of the replacement property is assigned to 1031 CORP., as the Qualified Intermediary. The Assignment is often included when the Agreement of Sale is signed but if it is 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. 

Read More

Topics: 1031 exchange assignment; 1031 exchange rules

Purpose of 1031 Assignments

Posted by Margo McDonnell on Tue, Nov 13, 2012

This Tuesday’s Tip covers an essential part of a valid 1031 tax-deferred exchange: the assignment of the sales agreements to the Qualified Intermediary (QI). 

Read More

Topics: 1031 exchange assignment; 1031 exchange rules