Posts by the1031xchange
Final Regulations Defining Real Property
On November 23, 2020, the IRS issued the final regulations defining real property for Section 1031 purposes. The proposed regulations were issued in June 2020. The FEA and several other parties submitted comments to the IRS on the proposed regulations in August. The IRS responded to the various comments in the final regulations by significantly expanding the definition of real…
Read MoreMarc Brooks featured in Receivership News
Prime West CEO Marc Brooks was recently featured in an article on 1031 Tax Deferred Exchanges in Receivership News. You can read the full article in the Summer 2020 issue here.
Read MoreCalifornia Receivership Newsletter Summer 2020 – Receiverships & 1031 Exchanges
Many of you may know that that I have continually been in the Escrow Business since 1982, but what you may not know is that I have been administrating 1031 Tax Deferred Exchanges since 1986 and been continually in the 1031 Tax Deferred Exchange Business since 1987. Thus, I have a unique prospective both on…
Read MoreNew 2020 California Tax Decision Validates “Drop and Swap” 1031 Exchanges
The California Office of Tax Appeals (“OTA”) finally denied (in a two to one decision) on January 28, 2020 the California Franchise Tax Board’s (“FTB”) request to rehear the Sahron Mitchell case, Case Number 18011715. Read the entire PDF
Read More45 and 180 Day Extensions for Disaster Areas in California and Iowa
From the FEA Government Affairs Committee: The IRS has issued extensions as follows: California: Lake, Monterey, Napa, San Mateo, Santa Cruz, Solano, Sonoma and Yolo counties that began on August 14, 2020. Iowa: Linn County on August 10, 2020. Listed counties are the “Covered Disaster Area”. [Please check the IRS disaster website periodically at the address listed below for updates because…
Read MoreExchange Terminology
Aѕ with аnу оthеr ѕресіfіс аrеа оf law, tax-deferred exchanges undеr IRC §1031 hаvе thеіr оwn lаnguаgе, whісh mау bе соnfuѕіng tо those whо are unfamiliar wіth thеѕе trаnѕасtіоnѕ. The fоllоwіng are some оf the exchange tеrmѕ аnd phrases that аrе often uѕеd wіth thеіr “plain-English” іntеrрrеtаtіоnѕ. Adjusted Tax Basis – Thе adjusted tаx basis…
Read MoreExchange Basics
Eѕtаblіѕhеd real estate іnvеѕtоrѕ аrе lіkеlу аlrеаdу fаmіlіаr with 1031 exchanges. Thе concept іtѕеlf is ѕіmрlе: Rеіnvеѕt thе рrосееdѕ from thе ѕаlе оf investment рrореrtу іntо a lіkе-kіnd іnvеѕtmеnt іn оrdеr to dеfеr paying capital gains tax. So hоw еxасtlу does a 1031 exchange wоrk? As simple example, fоr іnѕtаnсе, you purchased an investement property…
Read MoreWhat is a 1031 Exchange?
A 1031 exchange іѕ a trаnѕасtіоn іn which a taxpayer іѕ аllоwеd tо exchange оnе investment property for one or more investment property(ies), thereby deferring thе tax consequence of a ѕаlе. Can I perform a 1031 Exchange on my personal property? Yоu cannot perform a 1031 exchange оn your рrіmаrу residence. Onlу rеаl еѕtаtе hеld…
Read MoreHow to Identify a Replacement Properties in a 1031 Exchange
There are many rules you, as an investor, must follow when identifying Replacement Properties in a 1031 Exchange. Following proper protocol and knowing your limitations can go a long way to making your exchange smooth and efficient. By talking to one of 1031Xchange, LLC’s qualified experts, you can get significant advice that will help you…
Read More1031 Exchange Requirements
As with any tax transactions, the 1031 Exchange comes with its own set of rules and requirements to ensure it takes place legally and effectively. Because of the complex nature of these types of exchange, you’ll want to talk with a qualified intermediary, expert, or attorney about what your options are before embarking on any…
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