Home Section 1031 of the Internal Revenue Code provides a valuable tax-saving opportunity for owners of qualified real estate assets in the United States. Under this provision, property owners can sell their investment or business property and defer paying taxes on the capital gains realized from the sale, as long as they reinvest the proceeds […]

Home A Qualified Intermediary, often abbreviated as QI, plays a crucial role in facilitating 1031 exchange transactions. This individual or entity acts as an impartial third party, independent of the buyer and seller, who assists in the coordination and execution of the exchange process. The IRS mandates the involvement of a Qualified Intermediary to ensure […]

Home A 1031 exchange, also known as a like-kind exchange (LKE), is a powerful tax-deferral strategy in the United States that enables investors to defer paying capital gains taxes, depreciation recapture, and state taxes in most states when selling real estate, provided certain conditions are met. This provision is outlined in Section 1031 of the […]

Home A Reverse or Parking Exchange represents a unique approach within the realm of 1031 Exchanges, a mechanism in the United States tax code that allows investors to defer capital gains taxes on the sale of certain types of properties. Unlike traditional 1031 Exchanges, where an investor sells their existing property (the Relinquished Property) before […]

Home In a Build-to-Suit Exchange, the Exchanger acquires land with the intention of constructing a customized structure to serve as the Replacement Property. This approach allows the Exchanger to tailor the new property to their specific requirements and preferences, ensuring it aligns perfectly with their business needs or investment goals. By purchasing land and overseeing […]

Home When embarking on a 1031 Exchange journey, it’s crucial to adhere to specific steps to ensure a seamless process. By following these steps diligently, you set the groundwork for a successful 1031 Exchange, maximizing your opportunities for tax deferral and investment growth. Additionally, working closely with your Qualified Intermediary (QI) and other professionals ensures […]

Home In assessing whether a 1031 Exchange aligns with your current circumstances, it’s essential to conduct calculations to ascertain your taxable gain. By utilizing these calculations to determine your net adjusted basis, you can gain valuable insights into the financial implications of pursuing a 1031 Exchange. It enables you to make informed decisions that align […]

Home The 1031 exchange period spans 180 days from the closing date of the Relinquished Property or the Exchanger’s Tax Return filing date, depending on which occurs first. This timeframe is crucial for completing the exchange process effectively. For those initiating a 1031 exchange in the fourth quarter of the year, it’s important to note […]

Home Following the sale of your relinquished property, there is a critical 45-day window during which you must identify your replacement property or properties. This identification process is essential and requires clarity, ensuring that replacement properties are unmistakably specified using either a legal description or physical address. To meet the requirements, your identification must be […]

Home In the realm of 1031 exchanges, the process of withdrawing funds entails adherence to specific protocols. Once an identification form has been duly submitted, exchangers must navigate through particular avenues to access their funds. Alternatively, if closure on identified properties does not occur within the initial timeframe, exchangers may opt to await the expiration […]