Top 5 Answers About 1031 Exchange Rules in 2018

To the relief of many real estate investors, the recent tax reform left the 1031 exchange rules of IRS tax code Section 1031 essentially untouched. The tax reform did however limit the 1031 exchange rules to real estate, allowing you to still implement the benefits of a 1031 exchange as a real estate investor. Before we get started, let's review some basic 1031 exchange rules concepts: 
Read More


1031 Exchange Aircraft (Updated 2018)

2018 Tax Reform limited 1031 Exchanges to Real Estate. This means that personal property aircraft, livestock, equipment, rolling stock and art are NO LONGER ELIGIBLE for exchange.  
Read More



Equipment, Livestock and Aircraft Exchange

2018 Tax Reform limited 1031 Exchanges to Real Estate. This means that personal property aircraft, livestock, equipment, rolling stock and art are NO LONGER ELIGIBLE for exchange.  
Read More



Understanding Reverse 1031 Exchanges - Do you qualify? (Updated July 2017)

How To Do a Reverse 1031 Exchange
A brief overview of the process of a reverse 1031 exchange

  1. You have a property you want to sell. This is Property A.
  2. Before you sell Property A, you find a new property you want, Property B. The IRS says that the taxpayer may not own both properties at the same time, if they want to do a 1031 exchange.
  3. An qualified intermediary, like 1031x, purchases and holds Property B until you sell the Property A.
  4. Once Property A is sold (within 180 days), Property B is transferred to you and the capital gains are deferred.
 
Read More



Cash From Your Property - A 1031 Loan Lets You Access Equity

Freeing up money before you sell your relinquished property can be a real benefit! Taxpayers reason that after making substantial cash contributions to their investment property certainly they should at least be able to take their cash contributions back out on a tax deferred basis. Cash contributions include: down payment, monthly reduction of principal balance on mortgages, and capital improvements to the investment real property. Nevertheless, the Internal Revenue Service Regulations are clear: Exchange proceeds received by the taxpayer during an exchange will be taxed. 
Read More



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