Exchanging Thoughts

1031 Exchanges Also Defer Depreciation Recapture

Posted by Margo McDonnell on Wed, Sep 26, 2012

We’ve all heard a million times that a 1031 exchange defers the gain you have when selling a business use or investment property. What many forget is that you must recapture all of your depreciation at 25%. Depending how long you have owned your property, the depreciation recapture could be a bigger tax bill than the capital gains. 

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

All or Nothing – Not!

Posted by Margo McDonnell on Thu, Sep 20, 2012

On this Thankful Thursday, we are grateful that 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

When to Report a 1031 Exchange

Posted by Margo McDonnell on Tue, Sep 18, 2012

While it may seem a little crazy to use this Tuesday Tip to discuss when you must report your 1031 tax-deferred exchange, many exchangers who filed for an extension are just now starting to work on their 2011 returns.

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Topics: tax consequences of a 1031 exchange, 1031 equal or greater value and equity