1031 Exchange Options

Real estate investors are always trying to improve their situation. As life moves on the definition of “improvement” also changes. With IRC section 1031 investors can drastically change the shape of their real estate investment without current tax liability. 
Read More



When the Clock Starts Ticking

There lots of rules to follow when you are trying to complete a 1031 exchange. The 45 day ID rule and 180 purchase rules can be the most difficult to deal with. 
Read More



Single Member LLCs as Tenants in Common

Limited Liability Companies are young creatures recently created by State statutes. By contrast the law of tenants in common is centuries old, much of it dating back to English law. In a May/ December romance these are wed into what is often the best structure for holding multiple owner investment real property. 
Read More



What Happens if I Trade Down in Value?

Hi, Thanks for taking my question.
I purchased a condominium three years ago as an investment, for $145,000. Todays FMV is approximately $250,000, leaving me with a Capital Gain of $95,000 (using the calculator). I have found a new home which I would like to purchase, but the cost of this investment is only $160,000. Is there any way to qualify for a partial sale/exchange to minimize my taxes? 
Read More



Real estate tax tips for exchanges

Generally, if you exchange business or investment property solely for business or investment property of a like-kind, no gain or loss is recognized under Internal Revenue Code Section 1031. If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized. 
Read More



How Can I 1031 Exchange and Develop the New Property?

Dear 1031x,
I want to buy an parcel of land as a replacement property in a 1031 exchange. It is already sudivided and I want to build single family homes on the lots and sell them. How should I do this to maximize my tax savings. 
Read More



Community property and tenants in common

Dear Steve,
As you have advised my wife and I will be holding title as two single member LLC's as tenants in common. My lender does not require a TIC agreement. Does the IRS require a TIC agreement? Is there anything else that I need to do to insure that the IRS will allow my 1031 exchange considering that my wife and I held title as community property in California and will now be holding title as tenants in common in Colorado? 
Read More



Simple Steps Defer Capital Gains

1.) Email us the name, email address and phone # of your closer to us at infox@1031x.com. Also, include the address of the property you are selling as well as your phone number (in case we need to reach you).  
Read More



1031 exchange and carried over basis

Dear 1031x,
In regards to an already successful deferred exchange, if the relinquished property has been fully depreciated doesn't this mean that the basis has been driven-down to zero? Since the basis of the old property is transferred to the new property, is there any form of depreciation for the new property? Also, is there any depreciation recapture? 
Read More