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
This Friday Free for All we will discuss an important rule in a 1031 tax deferred exchange: the same taxpayer requirement.Read More
On this Thankful Thursday, we are grateful for our ability to diversify in a 1031 tax-deferred exchange. We have talked in past posts about the ability to buy or sell multiple properties in an exchange. However, one of the great benefits of a 1031 exchange is the ability to diversify the type of assets or the location of the assets.
On this Free for All Friday, we are discussing the flexibility of “like-kind” when it comes to real property. In a 1031 tax-deferred exchange, you must acquire like-kind property but any kind of real property can be exchanged for any other kind of real property. Like-kind refers to the natural or character of the property not the specific type of property. What makes real property like-kind to another is that they are held for productive use in a trade or business or for investment.
On this Thankful Thursday, we are grateful for the opportunity to buy and sell more than one property in a 1031 tax-deferred exchange. The majority of 1031 exchange transactions involve the sale of one relinquished property followed by the purchase of one replacement property. Fortunately, Exchangers have the option of including more properties to accomplish their objectives.
This Tuesday’s Tips looks at a recent surge in the number of last minute exchanges we are seeing.
This More More Monday post looks at the many 1031 exchanges facilitated each year involving agricultural assets. Of course, the land can be exchanged for other land or any real property to be held for investment or use in a trade or business. However, farmers have many other assets that qualify for 1031 tax-deferral. Two of the most commonly exchanged assets are livestock and equipment.
This More More Monday post discusses various examples of “real property” that can be exchanged with real estate. When we think of a 1031 tax-deferred exchange or “like-kind” exchange, we first think of exchanging real estate for real estate. And that is typically what is done. However, have you considered what the definition of “real property” is in a 1031 exchange or what types of property can be exchanged?
This Free for All Friday is looking at a recent surge in the number of last minute exchanges we are seeing.
Topics: 1031 exchange rules