Exchanging Thoughts

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

Exchanging Up and Increasing Cash Flow

Posted by Ellie Trovato on Wed, Jun 06, 2018

If you are reading this blog, you likely already know that a 1031 exchange allows you to defer the gain on the sale of a business use or investment property when exchanging it for like-kind property. What you may not know, is that it can allow you to exchange up, increasing your revenue stream and overall profitability. This Wealth Building Wednesday discusses the exchange of vacant land held for investment use into like-kind, revenue producing property.

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Topics: like-kind property, benefits of 1031 exchange, 1031 like-kind property, Diversification, vacant land & 1031 exchange, vacant land, investment property

Diversify, Relocate, Consolidate…Yes, you can!

Posted by Ellie Trovato on Thu, May 24, 2018

Today everyone wants the latest and greatest of everything from homes to cars and electronics. Why not want the same for your real estate portfolio? On this Thankful Thursday, we are grateful for the true diversification of real estate assets a 1031 exchange provides.

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Topics: like-kind property, 1031 like-kind property, Diversification of real estate assets, Relocation, Diversification

“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

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

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

Real Property Means a Lot More than Real Estate

Posted by Margo McDonnell on Thu, Sep 13, 2012

On this Thankful Thursday, we are talking about various examples of “real property.” 

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

Conservation Easements Preserve Land and your Wealth

Posted by Margo McDonnell on Mon, Sep 10, 2012

This More More Monday addresses the 1031 exchange of conservation easements.

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Topics: like-kind property, 1031 exchange and conservation easement

Definition of Like-Kind Provides Flexibility

Posted by Margo McDonnell on Thu, Aug 30, 2012

On this Thankful Thursday we are grateful for 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, Oil and gas royalties, like-kind property

Cows??

Posted by Margo McDonnell on Mon, Jul 16, 2012

There are 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: agricultural exchanges, like-kind property, 1031 Exchange, ag exchanges, farm 1031