Exchanging Thoughts

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

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

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

Taxable Sale vs. 1031 Exchange: Impact of New and Higher Taxes

Posted by Margo McDonnell on Fri, Feb 01, 2013

Exchange Team

By none, we have all heard quite a bit about the American Taxpayer Act of 2012 and the new 3.8% Medicare Tax.  Now let’s take a look at an example and see how a 1031 tax-deferred exchange might benefit the seller:

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Topics: tax consequences of a 1031 exchange

Is Estate Tax Exemption Portability Here to Stay?

Posted by Margo McDonnell on Thu, Oct 25, 2012

This Thankful Thursday post discussed portability. When it comes to taxes, the term “portability” does not sound like a good thing. As part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (The “ACT”), portability is a GREAT thing! It is the concept in which a surviving spouse is allowed to use his/her deceased spouse’s unused estate tax exclusion.

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Topics: tax consequences of a 1031 exchange

Trading Down is Sometimes Okay

Posted by Margo McDonnell on Wed, Oct 24, 2012

This Wealth Building Wednesday post discusses a common 1031 misconception. You are not required to invest all your value and equity if you don’t want to. The general rule to maximize your deferral in a 1031 exchange is to acquire replacement property of equal or greater value and equity. 

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Topics: tax consequences of a 1031 exchange

State Taxes and 1031 Exchange

Posted by Margo McDonnell on Fri, Oct 19, 2012

This Free for All Friday post is devoted to clarifying state income tax issues and state withholding requirements when it comes to a 1031 tax-deferred exchange.

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Topics: tax consequences of a 1031 exchange, state withholding taxes and 1031; state income tax

Reporting your 1031 Exchange on Form 8824

Posted by Margo McDonnell on Thu, Oct 11, 2012

Many that requested an extension are now wrapping up (or maybe just starting) their 2012 tax return.  Those that completed a 1031 exchange must also report the transaction on this return due October 15th.  Therefore, we are using this Thankful Thursday  post to help those now trying to report their 1031 exchange. Following is a line-by-line Instruction for the completion of Form 8824:

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

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

To Refinance or Not

Posted by Margo McDonnell on Tue, Oct 02, 2012

This Tuesday’s Tip is about an often used loophole in the 1031 exchange regulations that has exchangers refinancing their replacement property to tap their equity.

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Topics: tax consequences of a 1031 exchange, refinancing 1031 replacement property