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.

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

Diversification: Music to my Ears

Posted by Margo McDonnell on Thu, Dec 13, 2012

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. 

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Topics: 1031 exchange rules, benefits of 1031 exchange

“Like-Kind” Provides Many Opportunities for 1031 Exchanges

Posted by Margo McDonnell on Fri, Nov 09, 2012

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.

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Topics: 1031 exchange rules, like-kind property

1, 2, 3 or More: The Choice is Yours

Posted by Margo McDonnell on Thu, Nov 08, 2012

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.

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Topics: 1031 exchange rules, benefits of 1031 exchange

Last Minute Exchanges are the New Norm

Posted by Margo McDonnell on Tue, Nov 06, 2012

This Tuesday’s Tips looks at a recent surge in the number of last minute exchanges we are seeing. 

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Topics: 1031 exchange rules, initiating 1031 exchange

1031 Exchanges of Agricultural Assets

Posted by Margo McDonnell on Mon, Oct 22, 2012

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.

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Topics: 1031 exchange rules, agricultural exchanges, ag exchanges

What is Like-Kind to Real Estate?

Posted by Margo McDonnell on Mon, Oct 15, 2012

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?

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Topics: 1031 exchange rules, like-kind property, 1031 like-kind property

Last Minute Exchange are the New Norm

Posted by Margo McDonnell on Fri, Oct 12, 2012

This Free for All Friday is looking at a recent surge in the number of last minute exchanges we are seeing. 

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Topics: 1031 exchange rules

Avoid the Boot when Selling in a 1031 Exchange

Posted by Margo McDonnell on Tue, Oct 09, 2012

This Tuesday Tips is designed to help you avoid “boot,” the taxable portion of a 1031 exchange.

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Topics: 1031 exchange rules, tax consequences of a 1031 exchange

Pipelines Like-Kind to Pipelines But They Weren't Always

Posted by Margo McDonnell on Mon, Oct 01, 2012

On this More More Monday, we are discussing recent IRS memorandum (ILM 201238027) which tackled the issue of whether the federal definition of real property trumped a state's definition of real property for 1031 purposes. The memorandum was in response to a request for guidance on how state law characterizations of property as real or personal affect whether the property is of like-kind for purposes of section 1031. The following scenarios were outlined:

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Topics: 1031 exchange rules, like-kind property