How Filing Your Tax Return Early Could Disqualify Your 1031 Exchange

When engaging in a 1031 like-kind exchange, timing is everything. While the allure of filing your tax return early and checking it off your to-do list is tempting, doing so could inadvertently terminate your exchange if it spans over two tax years. Here’s why delaying your tax return might be essential to preserving the benefits […]

FIRPTA Issues in 1031 Exchanges for Foreign Property Sellers

The Foreign Investment in Real Property Tax Act (FIRPTA) is a critical element of U.S. tax law that can greatly impact foreign investors involved in real estate transactions. When combined with a 1031 exchange—a strategy named after Section 1031 of the Internal Revenue Code that allows investors to defer capital gains taxes by reinvesting proceeds […]

Understanding the Same-Taxpayer Rule in a 1031 Exchange

Navigating the same-taxpayer rule is crucial in a 1031 exchange. This rule dictates that the taxpayer who sells a property must be the same taxpayer who buys the replacement property. Let’s dive into what this means and why it matters. What is Beneficial Ownership? Beneficial ownership refers to an individual who enjoys the benefits of […]

1031 Exchange Tax Reporting — How to File?

This is your simple guide to 1031 exchange tax reporting. Nobody enjoys paying their taxes. While we can’t make it fun for you, we can at least help your 1031 exchange tax reporting make more sense. In this post, you’ll learn 5 important things: When do I report my 1031 exchange? How do I report my […]

1031 Exchange vs Opportunity Zones. Which is better for you?

Comparing the Pros and Cons of Opportunity Zones and 1031 Exchange After the Trump administration signed into law the Tax Cuts and Jobs Act of 2017, America’s real estate community was abuzz over the provision allowing for Qualified Opportunity Zone investments.  In particular, the 1031 exchange community took notice. This is because Opportunity Zones promised to complement — or […]

Partnership Strategies in a 1031 Exchange

– What to do when some partners want to do a 1031 exchange, but others don’t – A frequent call to our company goes like this: “Five of us own an LLC. The LLC, in turn, owns a piece of real estate held for investment. It has a substantial gain in the property and we have the […]