Exchanging Thoughts

Federally Declared Disaster Extensions for Victims of Wildfires or Natural Disasters

Posted by Margo McDonnell, CRE, CES® on Mon, Nov 16, 2020

If you are in the unfortunate situation of being affected by the wildfires in Oregon, we send our heartfelt condolences to you. The Oregon wildfires are now a federally declared natural disaster, currently affecting those in Clackamas, Douglas, Jackson, Klamath, Lane, Lincoln, Linn and Marion counties.

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Topics: 1031 exchange extensions, 1031 disaster extensions, tax-deferred exchanges, 1031 exchanges, investment property, Federally Declared Disasters

DSTs: An Alternative 1031 Replacement Property Option

Posted by Margo McDonnell on Tue, May 26, 2020

Owners of appreciated real estate face tough decisions: (1) hold onto a property that may not be working for them anymore so they don’t have to pay the high tax liabilities associated with selling; (2) sell and pay the capital gains, 25% depreciation recapture and possibly the 3.8% Net Investment Income Tax; or (3) complete a 1031 exchange, defer the gain and reinvest all proceeds into more desirable replacement property. For those investors exchanging, they can buy traditional fee interest in property or an investment vehicle known as a Delaware Statutory Trust (DST). Regardless, all of the 1031 exchange rules and timelines remain the sale. The DST is simply a different replacement property option.

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Topics: 1031 exchanges, 1031 Replacement property, Revenue Ruling 2004-86, Delaware Statutory Trust (DST), Real Estate Investing, Appreciated Property

Know Where Your State Stands

Posted by Ellie Trovato on Tue, Jan 22, 2019

A tax-deferred exchange allows you to defer federal capital gain taxes when like-kind real property within the exchange timeline. While most states with an income tax regime recognize a 1031 exchange and allow you to defer the state gain as well as the federal gain there is one state that does not. This Tuesday Tip looks at state requirements in a 1031 exchange.

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Topics: Role of Qualified Intermediary, 1031 non-resident withholding tax, 1031 exchanges, 1031 Replacement property

It's All in the Math with 30 Year Leases

Posted by Ellie Trovato on Mon, Jan 21, 2019

When you think of a tax-deferred exchange, you often think of like-kind exchanges and what qualifies
as like-kind. This More, More Monday we will discuss 30 year leases, an often overlooked property that qualifies as like-kind in a 1031 exchange.

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Topics: 1031 like-kind property, 1031 exchanges, 30 Year Leases

The Power of 1031 Exchanges

Posted by Ellie Trovato on Fri, Jan 18, 2019

We have discussed many of the benefits of a tax-deferred exchange but what can a 1031 exchange really do for you? This Friday Free for All will provide an example of the true power of a 1031 tax-deferred exchange. Let’s look at a specific scenario and how a 1031 exchange can benefit the seller.

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Topics: tax consequences of a 1031 exchange, 1031 exchanges, 1031 Exchange Benefits

Going Back to Basics

Posted by Ellie Trovato on Fri, Jun 29, 2018

This Friday Free for All we will go back to basics. We will look at 1031 tax-deferred exchanges, what they are, their benefits, how they work and the rules involved.

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Topics: like-kind property, benefits of 1031 exchange, 1031 exchanges, 45-Day Identification Period, Same Taxpayer Requirement

Maximize Your Tax-Deferral by Minimizing Boot

Posted by Ellie Trovato on Fri, Jun 22, 2018

One of the many benefits of a tax-deferred exchange is the ability to defer capital gains taxes when selling and acquiring like-kind real property. This Friday Free for All discusses ways to maximize your tax deferral by minimizing taxable “boot.”

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Topics: section 1031, 1031 equal or greater value and equity, 1031 gain, 1031 exchange closing costs, 1031 exchanges

Using Equity the Right Way

Posted by Ellie Trovato on Thu, Jun 14, 2018

We all know that a tax-deferred exchange allows you to defer capital gain taxes but there is another strategy to help you get a great return on investment and tap into your equity. Today’s Thankful Thursday is about refinancing to pull equity out of your replacement property.

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Topics: 1031 equal or greater value and equity, 1031 gain, 1031 exchanges

Step it up with Estate Planning

Posted by Ellie Trovato on Wed, May 23, 2018

I have started to think about estate planning. I have two children and I want to make sure they are taken care of. One of the many (great!) benefits I have learned about 1031 exchanges is that they are a great estate preservation tool. Today's Wealth Building Wednesday is about using 1031s to build and preserve wealth.

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Topics: section 1031, estate planning, 1031 exchanges

Marcellus Shale and 1031 Exchanges

Posted by Margo McDonnell on Mon, Jul 30, 2012

The Marcellus Shale is a rock formation lying 5,000 to 9,000 feet below the surface, stretching from New York State through West Virginia of which sixty percent is located in Pennsylvania.  Marcellus Shale exploration and drilling has overtaken the northern to southwestern part of Pennsylvania, and with it comes many new challenges and opportunities for the landowners in this area, and 1031 exchanges may help.  

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Topics: Marcellus Shale, Oil and gas royalties, 1031 exchanges