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

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

It’s My Money and I Want It Now!

Posted by Margo McDonnell on Fri, Sep 07, 2012

On this Free for All Friday, we are discussing when exchange funds can be released from a 1031 exchange account. 

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Topics: 1031 exchange process, 1031 exchange funds

Improvement Exchanges Offer Great Solutions

Posted by Margo McDonnell on Wed, Aug 29, 2012

An improvement exchange allows you to use some of the 1031 exchange proceeds to make improvements to the replacement property. This type of exchange is usually structured when the purchase price of the replacement property is less than the net selling price of the relinquished property.  It’s not as simple as you buying the replacement property and then making the improvements because the improvements would not qualify as like-kind property. The value of the property at the time you acquire it is all that can be counted. You cannot take title to the replacement property until the improvements are completed. Typically, the Qualified Intermediary (QI) (or an affiliate of the QI) will take title, sign the contract with the builder and have the improvements completed. Once the improvements are completed, the QI conveys title of the improved property to you. 

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Topics: 1031 exchange process, 1031 improvement exchange

The ABCs of 1031 Exchanges

Posted by Margo McDonnell on Fri, Aug 17, 2012

We are frequently contacted by investors and advisors who need a refresher on 1031 exchanges. Here is a quick overview:

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Topics: 1031 exchange rules, 1031 exchange process

45-Day IDs that Make or Break a 1031

Posted by Margo McDonnell on Tue, Aug 14, 2012

One of the most important requirements of a successful 1031 exchange is the proper identification of replacement property within 45 days of when the relinquished property is transferred to a buyer. While this requirement seems simple to satisfy, for many, it creates a great deal of stress for a variety of reasons. Following are the most common issues that pop up and tips on how to avoid unnecessary worry. 

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Topics: 1031 exchange process, 45-Day Identification Period

10 Steps to a 1031 Exchange and Tax Savings

Posted by Margo McDonnell on Fri, Jul 13, 2012

Many "first timers" are often intimidated by the 1031 exchange process at the on-set but raving about how easy it was at the end. An exchange is simply a sale transaction followed by a purchase transaction linked together by paperwork.   

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Topics: 1031 made easy, 1031 exchange process, 1031 exchanges