1031 exchanges: Tenants in Common Investing Basics - 07/04/08 01:59 PM
Have you wanted to know more about the basics of investing in a Tenants in Common property? In our new podcast we go over some of the important benefits and risks of 1031 Exchange Tenants in Common Investing
Tenants in Common Basics - Podcast
Keep current on 1031 Exhanges with our … (2 comments)
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1031 exchanges: An Attorney's Point of View: The VALUE of a GOOD Buyer's and Seller's Agent - Why You Need One! - 07/03/08 01:34 PM
[REVISION 7/4/08 (original post 7/3/08): The purpose of this post is to educate the public regarding the value a GOOD agent will bring to the transaction, why their fees are justified and how to find a GOOD agent]
Over the past few days there has been a HEATED ongoing debate regarding whether agents … (6 comments)
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1031 exchanges: 1031 Exchange - 2008 Farm Bill Affects Water Rights As Like Kind Property - 07/02/08 06:59 PM
ARE WATER RIGHTS LIKE-KIND PROPERTY?
On May 22, 2008, Congress enacted the Food, Conservation and Energy Act of 2008 which is often referred to as the Farm Bill. Among other things, the Act amends IRC Section 1031(a)(2)(B) to exclude mutual ditch, reservoir or irrigation company stock from the … (2 comments)
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1031 exchanges: Re-Post - The Difference Between the Mortgage Forgiveness Debt Relief Act of 2007 and State Anti-Deficiency Laws - 06/26/08 09:23 PM
A week or so ago, I wrote a post detailing the Mortgage Forgiveness Debt Relief Act of 2007 (MFDRA) because I'd read a number of posts where the authors confused the MFDRA with their state's anti-deficiency laws. That post was lost when AR timed out on me when I went to … (12 comments)
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1031 exchanges: Silver Complex Firefighters Could Use Donations of Supplies - How You Can Help! - 06/26/08 07:23 PM
I recently received an email from the Yosemite Gateway Association of Realtors indicating that the firefighters who have been fighting the Silver Complex fires could use donations for incidental supplies to make them more comfortable while they are protecting our homes and forests. If you are interested in providing these … (0 comments)
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1031 exchanges: California Wildfires - Oakhurst and Silver Complex Fires UPDATE - 06/26/08 07:14 PM
Thursday, June 26 - 10:00 am
THE FOLLOWING INFORMATION WAS OBTAINED FROM THE SIERRA NATIONAL FOREST BASS LAKE RANGER DISTRICT & CAL FIRE
Three fires are located northwest of the town of Oakhurst, south of Fish Camp, just south of Ponderosa Basin, and in the Timber Loft area. … (4 comments)
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1031 exchanges: 1031 EXCHANGES MAY BENEFIT INVESTORS FACING FORECLOSURE - 06/26/08 06:32 PM
I know it sounds weird but it could help an investor in a very specific set of circumstances.
In the last post we examined the options available for taxpayers who had debt forgiven or canceled on their principal residence. But what about those who own investment property who are facing … (6 comments)
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1031 exchanges: The Difference Between the Mortgage Forgiveness Debt Relief Act of 2007 and State Anti-Deficiency Laws - 06/26/08 04:42 PM
A week or so ago, I wrote a post detailing the Mortgage Forgiveness Debt Relief Act of 2007 (MFDRA) because I'd read a number of posts where the authors confused the MFDRA with their state's anti-deficiency laws. That post was lost when AR timed out on me when I went to … (6 comments)
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1031 exchanges: 1031 Exchanges - Is An Assignable Contract Necessary? - 06/12/08 01:45 PM
YES!
This issue has come up twice this week. Once on an AR blog and once in the course of my business. So here you go. . .
When a client selects a Qualified Intermediary (QI, accommodator, facilitator) and decides to open an exchange account a number of contractual things … (9 comments)
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1031 exchanges: 1031 Exchange Explained - 06/11/08 09:58 PM
Are you interested in learning about the 1031 Exchange process? Our new podcast series will educate you on the 1031 Exchange process. Listen to our new edition on 1031 Exchange Explained.
1031 Explained - 1031 Exchange Podcast Subscribe to our iTunes 1031 Exchange Podcast Download 1031 Exchange Explained in .wmv
… (2 comments)
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1031 exchanges: 1031 Exchanges -- An Exchange May Still Be Necessary, Even in a Declining Market - 06/11/08 04:35 PM
There May Still Be Capital Gain Even If they Are Selling for Less than What They Paid to Purchase It!!!
You ask, "How can that possibly be?"
Well, remember that when a taxpayer engages in a 1031 Tax Deferred Exchange (selling investment property and exchanging into a new investment … (4 comments)
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1031 exchanges: 1031 Exchanges - Why Investors May Still Need to Exchange in A Declining Market. - 06/11/08 02:33 PM
There May Still Be Capital Gain Even If they Are Selling for Less than What They Paid to Purchase It!!!
You ask, "How can that possibly be?"
Well, remember that when a taxpayer engages in a 1031 Tax Deferred Exchange (selling investment property and exchanging into a new investment … (6 comments)
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1031 exchanges: Wondering Why Your Phone has Stopped Ringing? - 05/19/08 10:05 PM
It Might Not Be the Market. . .
Has your phone gone from this. . .
to this . . .
Are you blaming it on the market? Are you sure it's the market and NOT your telephone policy?
Don't miss Part 2 in the series.
Clients and Agents … (13 comments)
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1031 exchanges: How Is Your Telephone Answered? PART 2 (Telephone Series) - 05/19/08 06:34 PM
You Could Be Losing Clients. . .
Does the person answering your phone sound like this . . .
Or this. . .
Or this?
FRONT OFFICE PERSONNEL
Are they Performing?
If the person answering your office phone is unprofessional, discourteous, incompetent or apathetic, you could be losing business. A great … (2 comments)
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1031 exchanges: Has Your Phone Stopped Ringing?? Telephone Series (Part 1) - 05/19/08 05:34 PM
It Might Not Be the Market. . .
Has your phone gone from this. . .
to this . . .
Are you blaming it on the market? Are you sure it's the market and NOT your telephone policy?
Don't miss Part 2 in the series.
Clients and Agents … (6 comments)
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1031 exchanges: 1031 Exchanges - Thinking About Investing In Real Estate With Other People? Read this First! - 05/16/08 02:27 PM
Partnerships V. Co-Ownership
Many investors consider asking other investors to join them in the purchase of an investment property. This arrangement can be very beneficial because it gives the parties the opportunity to invest in property they may not have been able to afford on their own and it spreads the … (10 comments)
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1031 exchanges: 1031 Exchanges - Can You Convert A Rental Into A Residence? - 05/16/08 12:59 AM
"MANY TAXPAYERS CAN TAKE ADVANTAGE OF TWO TAX CODE SECTIONS"
After the Q & A, I thought I write a summary of the current state of rentals and residences and converting them. Here are some of the issues to review with the tax advisor when considering converting an investment property to a … (8 comments)
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1031 exchanges: 1031 Exhanges - REAL LIFE Q & A - RE: How Long Before I Can Move In? - 05/16/08 12:48 AM
REAL LIFE QUESTION AND ANSWERS
Today, I received a question from a reader of my blog. It is a very common question, so I thought I'd give you both the actual question and my answer. All identifying information has been removed. Click here for more formal information regarding converting a rental … (0 comments)
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1031 exchanges: PHONE/EMAIL SCAM RE: IRS Economic Stimulus - 05/15/08 12:26 AM
Please Alert Your Clients to This Scam
I received this email today purporting to be from the IRS regarding collecting my IRS Economic Stimulus Rebate. It is a scam. Note that the link listed does not even include www.irs.gov. I apologize for the poor resolution of the screen shot. (I'm still learning … (6 comments)
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1031 exchanges: 1031 Exchanges - Earthquake Preparedness - 05/10/08 11:05 PM
U.S. Geological Service Issues Report on California
They reported that there is a 99% chance that California will experience a 6.0+ earthquake in the next 30 years. Southern California's has a slightly higher chance for a large scale earthquake than northern California.
What that means is that every family needs to … (2 comments)
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1031 exchanges: Fresno Association of Realtors Golf Tournament - 05/10/08 10:54 PM
Last Wednesday - Great Tournament
A full complement of golfers took to the links at Riverbend Golf Course to participate in the Annual FAR Golf Tournament. Many affiliates developed creative themes for the holes they sponsored. Asset Preservation, Inc. sponsored Hole Number 12, where we served Montana Amazon drinks and salami … (2 comments)
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1031 exchanges: 1031 Exchanges - LLCs & Partnerships - 05/10/08 10:41 PM
It's Important Who Drafts the Operating Agreement and Partnership Agreement
Recently, I was called by a former client who was concerned because he was the managing member of an LLC that had done a multiple property exchange. One of the other members, an attorney, had drafted the LLC's Operating Agreement (the … (4 comments)
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1031 exchanges: Concise Overview of 1031 Exchanges - Series V - 05/06/08 11:14 PM
Concise Overview of 1031 Exchanges - Series V
1031 Exchange Identification Requirements
You must identify your potential like-kind replacement properties to your Qualified Intermediary within the 1031 exchange time limits discussed above. The identification must comply with one (1) of the like-kind replacement property identification rules outlined below:
Three (3) Property Identification Rule
The … (0 comments)
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1031 exchanges: Concise Overview of 1031 Exchanges - Series IV - 05/06/08 11:11 PM
Concise Overview of 1031 Exchanges - Series IV
1031 Exchange Structures
The most common 1031 exchange structure is a forward, or delayed, 1031 exchange where you sell your relinquished property first and then acquire your like-kind replacement properties within the prescribed 1031 exchange deadlines. A reverse 1031 exchange allows you to acquire your … (0 comments)
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1031 exchanges: Concise Overview of 1031 Exchanges - Series III - 05/06/08 11:08 PM
Concise Overview of 1031 Exchanges - Series III
Like Kind Property Requirement
There is a lot of misinformation regarding what constitutes like-kind replacement property. It is not true that if you sell a condo you must acquire a condo, etc. As long as your relinquished and replacement properties meet the qualified use requirement … (0 comments)
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1031 exchanges: Concise Overview of 1031 Exchanges - Series II - 05/06/08 11:06 PM
Concise Overview of 1031 Exchanges - Series II
Reinvesting or Replacing Your Investment Values
You must acquire one or more like-kind replacement properties that are equal to or greater in net purchase value than the net sales value of the relinquished property you sold. You must reinvest all of your net cash … (0 comments)
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1031 exchanges: Concise Overview of 1031 Exchanges - Series I - 05/06/08 11:04 PM
Concise Overview of 1031 Exchanges - Series I
Concise Overview of 1031 Exchanges
The 1031 Exchange may not always be the right or best solution for your specific situation, so you should consider whether other tax deferral or tax exclusion strategies might be more appropriate and you should always consult with your legal, … (0 comments)
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1031 exchanges: 1031 Exchange - Like Kind Property - REWIND - 05/06/08 02:12 PM
A Quick Review of the Most Commonly Misunderstood Aspect of 1031 Exchanges
Yesterday, we examined some more advanced aspects of 1031 exchanges that addressed like kind property issues. I thought it would be helpful to do a quick review on one of the most confusing areas of 1031s.
One of the most commonly … (3 comments)
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1031 exchanges: 1031 Exchanges - Don't Miss These Posts On Development Rights - 05/05/08 04:07 PM
Exchanging Development Rights
I posted these during a low traffic period this morning. I've been checking on the stats and it looks like they were largely missed. Click here for Post 1 of 2 "Definition of Development Rights" and click here for Post 2 of 2 for the "IRS's Analysis of Transferable Development … (2 comments)
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1031 exchanges: 1031 Exchanges - Development Rights - Post 2 of 2 - 05/05/08 01:19 PM
How the IRS Analyzes Whether Transferable Development Rights are Like-Kind
In my previous Post 1 of 2 that addressed the definition of Transferable Development Rights ("TDR") we saw that the IRS, in a PLR* determined that they were like-kind to a fee simple. Below, we will look at the analysis and reasoning the … (2 comments)
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1031 exchanges: 1031 Exchanges - Development Rights - Post 1 of 2 - 05/05/08 01:04 PM
Several weeks ago in my blog I discussed different types of property that may or may not qualify as like-kind including leaseholds, oil, gas and mineral rights, water rights, REITS and Timeshares, and easements. In this post we will examine the definition of development rights and in Post 2 we will examine … (4 comments)
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1031 exchanges: 1031 Exchanges - Celebrating 40,000 Points - 05/04/08 07:59 PM
New Milestone!!
With each new milestone I achieve on AR, I become more grateful for finding this unique and dynamic community. I've made friends from all over the country. People have contacted me who moved away from the Fresno area and are reconnecting with California's wonderfull Central Valley. The learning opportunities on AR … (12 comments)
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1031 exchanges: 1031 Exchanges - Critical Information For Agents - 05/04/08 07:38 PM
1031 tax deferred exchanges provide real estate agents with a tremendous opportunity to increase commissions! Conversely, by not understanding a few key exchange concepts, real estate agents often can unknowingly incur increased liability. I have provided answers to questions frequently asked by real estate agents. Contract law varies from state to … (2 comments)
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1031 exchanges: 1031 Exchanges - La Feliz Derby Downs Fundraiser - 05/04/08 06:14 PM
Valley Children's Hospital
Yesterday, I was honored to be invited to the very exclusive La Feliz Derby Downs Fundraiser benefiting Valley Children's Hospital. It is a Kentucky Derby themed day at the Fresno County Fairgrounds. Invitees are encouraged to dress in their best "Derby Wear." They have a contest for the best … (2 comments)
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1031 exchanges: Concise Overview of 1031 Exchanges - Series II - 05/03/08 03:27 PM
Concise Overview of 1031 Exchanges - Series II
Reinvesting or Replacing Your Investment Values
You must acquire one or more like-kind replacement properties that are equal to or greater in net purchase value than the net sales value of the relinquished property you sold. You must reinvest all of your net cash … (2 comments)
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1031 exchanges: 1031 Exchanges - The Odd Ducks - Auctions, Short Sales and REOs - 05/03/08 12:59 PM
Buying an Auction, Short Sale or REO as Replacement Property
TIME SENSITIVITY OF 1031 EXCHANGES
Two of the key requirements under section 1031 are highly time sensitive.
45 Day Identification Period
After closing escrow on the Relinquished Property, the exchanger has 45 Days to Identify up to Three properties ("Three Property Rule"). After passing … (4 comments)
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1031 exchanges: 1031 Exchanges - Structuring Reverse and Improvement Exchanges - 05/03/08 02:54 AM
"What Differentiates Asset Preservation's Format"
STRUCTURING COMPLEX EXCHANGES
A number of "Qualified Intermediary" companies offer improvement and reverse exchanges, but the structure varies from company to company. What differentiates Asset Preservation, Inc. from others?
Quite simply, Asset Preservation offers the best exchange structure and most qualified professionals to facilitate these very unique and complex … (2 comments)
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1031 exchanges: Short Sales and the 1031 Exchange - 05/02/08 11:03 PM
Short Sales and the 1031 Exchange
The question was asked of me, "can I exchange into a short sale property". The easy answer is YES! Of course there are a lot of what ifs with that answer.
First is both the lender and seller must agree to the terms of the sale.
That seems … (10 comments)
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1031 exchanges: Concise Overview of 1031 Exchanges - Series I - 05/02/08 10:08 PM
Concise Overview of 1031 Exchanges - Series I
Concise Overview of 1031 Exchanges
The 1031 Exchange may not always be the right or best solution for your specific situation, so you should consider whether other tax deferral or tax exclusion strategies might be more appropriate and you should always consult with your legal, … (0 comments)
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1031 exchanges: 1031 Exchange -Five Reasons To Exchange - 05/01/08 11:45 PM
"INVESTORS CAN MEET MANY OBJECTIVES UNDER IRC §1031"
Section 1031 tax deferred exchanges continue to increase in popularity as more investors nationwide discover the wide range of investment objectives that can be easily met through exchanging.
I. PRESERVATION OF EQUITY A properly structured exchange provides real estate investors with the opportunity to defer … (4 comments)
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1031 exchanges: What is Qualified Use in 1031 Exchanges - 05/01/08 10:22 PM
What is Qualified Use in 1031 Exchanges
Qualified Use Property
Your relinquished property must have been held by you for rental, investment or use in your business. And, you must have the INTENT to HOLD your acquired like-kind replacement properties for rental, investment or use in your business.
Property not held for … (0 comments)
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1031 exchanges: 1031 Exchange into a 721 or an upREIT - 05/01/08 09:02 PM
1031 Exchange into a 721 or an upREIT
Please review to gain additional knowledge contact me.
Section 721 - Exchange of Property Into A Real Estate Investment Trust (REIT)
Section 721 of the Internal Revenue Code ("721 Exchange") allows you to exchange your rental or investment real estate for shares in a Real Estate … (0 comments)
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1031 exchanges: Local Knowledge, Nationwide - 05/01/08 08:58 PM
Local Knowledge, Nationwide
Fresno and the San Joaquin Valley is growing steadily, but we're still a small community at heart. People here like doing business with well-established local companies with solid reputations. They look for those qualities in their legal, tax and financial advisors. They deserve the same from their 1031 Exchange … (0 comments)
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1031 exchanges: 1032 Exchange, What is it? - 05/01/08 08:36 PM
1032 Exchange, What is it?
Section 1032 - Exchange of Corporation Stock for Property
Section 1032 of the Internal Revenue Code ("1032 Exchange") provides that no gain or loss shall be recognized to a corporation on the receipt of money or other property in exchange for stock (including treasury stock) of such corporation.
This … (0 comments)
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1031 exchanges: 1031 Exchanges - STOCK MARKET PASSES 13,000 TODAY!! - 05/01/08 05:03 PM
Stocks Rise as Dollar Advances on Optimism About US Economy
It's great to finish out the day with some upbeat optimistic news!!! The Associated Press reported that the Dow rose 190 points because investors viewed the rising dollar and falling oil prices as a positive sign for the economy. Click Here for the … (4 comments)
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1031 exchanges: 1031 Exchanges - Lending's Role In An Exchange - 05/01/08 11:44 AM
DON'T GET KICKED BY THE UGLY BOOT
Section 1031's purpose is to permit taxpayers to defer the capital gain on the sale of appreciated investment property as long as its rules are followed. One of the primary rules is that the sale property must be exchanged for property of like kind (held … (2 comments)
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1031 exchanges: 1031 or 1033 exchange questions - 04/30/08 10:57 PM
1031 or 1033 exchange questions
If anyone has 1031 or 1033 exchange questions please let me know. My company focuses on the more difficult exchange issues. I'm a local QI in the San Joaquin area, my company has local investors, local office and local banking relationship to deposit clients exchange funds into. If you have … (4 comments)
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1031 exchanges: 1031 Exchange what is it? - 04/30/08 10:49 PM
Section 1031 - 1031 Exchange of Property Held for Investment
Section 1031 of the Internal Revenue Code ("1031 exchange") provides that property held as rental or investment property or property used in your business ("relinquished property") can be exchanged for "like-kind" property also held as rental or investment property or property used … (2 comments)
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1031 exchanges: 1031 Exchanges - Last Day to Buy Season Passes for Sierra Summit - 04/30/08 06:07 PM
Season Pass Sale ends today 4/30/08. These are incredible deals for the skier who skis as least five days a year. Regular adult lift ticket prices have been $50 this season and they may go up next season.
The Sale price Sierra Summit Season Passes for the 2008-2009 season are $249 for repeat season … (0 comments)
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1031 exchanges: 1031 Exchanges - Held for Resale v. Held for Investment - 04/30/08 05:53 PM
Many investors want to know "How long do I need to hold onto property for it to qualify for 1031 treatment?" This is an area that the Treasury Regulations do not directly address. Instead, the focus is on the intent of the investor at the time of sale of the relinquished property and at the time … (0 comments)
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1031 exchanges: 1031 Exchanges and The Serial Flipper - 04/30/08 03:07 PM
To Flip or Not To Flip
This post was inspired by a comment I made on JL's Blog post about flipping property as an investment strategy. As he pointed out many first time real estate investors are entering the market inspired by shows like "Flip This House." What a lot of these shows … (6 comments)
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1031 exchanges: 1031 Exchanges - Using TIC Structure to Reduce Foreclosure Rate - 04/29/08 06:04 PM
Company Proposing TIC Arrangements As A Foreclosure Alternative
Dees Stribling of Commercial Property News reported in his article "NetLease Q & A: New TIC Structures Proposed by Prudential Rand's Rand" that Greg Rand of Prudential Rand Realty in New York is currently exploring with his clients the idea of setting up a TIC-like … (9 comments)
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1031 exchanges: Reminder on 1031 Tax Deferred Exchanges - 04/29/08 09:33 AM
Effective for purchases after October 22, 2004, when a rental residence was acquired in a tax-deferred Internal Revenue Code 1031 exchange, the property must be owned at least five years, and owner occupied at least two years, to qualify for the Internal Revenue Code 121 principal residence sale exemption up to … (0 comments)
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1031 exchanges: 1031 Exchanges - Improvement Exchanges - Important Requirements - 04/24/08 12:50 AM
"IT IS IMPORTANT TO UNDERSTAND THESE ADDITIONAL REQUIREMENTS"
The improvement exchange is a powerful strategy that enables an investor to improve a replacement property. Although this provides tremendous flexibility and opens up a vast array of potential replacement property options, a couple of additional requirements must be followed to obtain full tax … (4 comments)
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1031 exchanges: 1031 Exchanges - IMPROVEMENT EXCHANGES - BUILD OR IMPROVE? - 04/24/08 12:46 AM
"BUILD NEW OR IMPROVE AN EXISTING PROPERTY"
… (2 comments)
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1031 exchanges: Can Closing Costs be included in a 1031 Exchange - 04/24/08 12:13 AM
Closing Costs
A. There is little definitive authority in the IRC or Regulations as to whether the
taxpayer incurs a tax liability on amount of money paid for closing expenses
B. The payment of real estate brokerage commissions does not result in taxable boot
Revenue Ruling 72-456, 1972-2 CB 468
i. Commissions paid by the taxpayer … (4 comments)
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1031 exchanges: IRC Section 121 – Exclusion of Capital Gain from the Sale of Principal Residence IRC - 04/23/08 11:38 PM
IRC Section 121 - Exclusion of Capital Gain from the Sale of Principal Residence IRC
§121; 1997 Taxpayer Relief Act
i. Amount of gain excluded from gross income shall not exceed $250,000 for
individual taxpayers and $500,000 for married taxpayers filing jointly
ii. Must have been the principal residence of taxpayer (both spouses) 24 out … (0 comments)
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1031 exchanges: Partnership interest and 1031 Exchanges - 04/23/08 11:28 PM
A. Partnership interests are not exchangeable
B. Partnerships can complete a 1031 exchange
C. Problems may occur when partners have different investment goals
i. Cash out of partnership
ii. Sell rather than exchange
iii. Solutions
1. Partnership dissolves under IRC Section 708
2. Partnership completes exchange; refinances property; distributes cash to
partners who do not want to participate in … (2 comments)
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1031 exchanges: IRC Section 1033 – Involuntary Conversions of Property IRC §1033 - 04/23/08 11:18 PM
IRC Section 1033 - Involuntary Conversions of Property IRC §1033
i. Non-recognition of gain when exchange proceeds are reinvested in property that
is similar or related in service or use to the property involuntarily converted
1. Section 1033A - Property loss or destruction, such as earthquakes
a. Replacement period of 2 years
2. Section 1033G - … (0 comments)
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1031 exchanges: 1031 Exchanges - The Definition of An AR Obsession? - 04/23/08 12:29 PM
Dreaming About AR Posts!
Last night I went to sleep very contented. It had been a productive day.
I woke up early this morning around 4 a.m. exclaiming "EEE Gads, I might have a problem."
So, you ask what was it that woke you up at 4 a.m. this morning? Get this, I … (10 comments)
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1031 exchanges: 1031 Exchanges - Multiple Property Exchanges - 04/22/08 01:17 AM
"UNDERSTANDING THE REQUIREMENTS IS CRITICAL"
… (5 comments)
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1031 exchanges: 1031 Exchanges - Simultaneous Exchanges - What Not to DO! - 04/22/08 01:13 AM
… (0 comments)
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1031 exchanges: Property that can not be 1031 Exchanged - 04/22/08 12:41 AM
Excluded Property
i. Property held for personal purposes, such as homes, automobiles, or boats
ii. Cash
iii. Stock in trade or other property held primarily for sale, such as inventory, raw
materials, and real estate held by dealers
iv. Stocks, bonds, or notes, or other securities, or evidences of indebtedness, such
as accounts receivable
v. Partnership interests
vi. Certificates … (2 comments)
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1031 exchanges: Holding Period for 1031 Exchanges - 04/22/08 12:12 AM
Holding Period
i. Exchanges between unrelated parties - Holding requirements are not clearly
defined
ii. Exchanges between related parties require a minimum holding period of two
years
1. Related parties include
a. Family members (spouses, siblings, parents, and children, but not
cousins, uncles, aunts, in-laws, stepparents, nephews, nieces, or exspouses)
b. Two corporations that are members of the same … (0 comments)
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1031 exchanges: Deferring 100% of the Gain During a 1031 Exchange - 04/22/08 12:09 AM
Deferring 100% of the Gain
A. Acquire a replacement property that is equal to or greater than the value of the
relinquished property
B. Reinvest all of the net equity from the relinquished property in the replacement
property and
C. Acquire debt on the replacement property that is equal to or greater than the debt
on the … (0 comments)
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1031 exchanges: Completing a Partial 1031 Exchange - 04/22/08 12:06 AM
Completing a Partial Exchange
A. The receipt of any excess cash, net reduction in replacement property debt, net
reduction in replacement property value, excluded property, and/or non-like-kind
property by the taxpayer in the exchange is taxable and termed boot IRC §1031(b)
i. The receipt of excess cash in an exchange is termed cash boot
ii. The … (2 comments)
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1031 exchanges: An Invitation to discuss 1031 Exchanges in Bakersfield CA, Seating still Available - 04/22/08 12:02 AM
An Invitation to discuss 1031 Exchanges in Bakersfield CA, Seating still available
An Invitation to discuss
Section 1031 Tax-Deferred Exchanges
and
Annual Property Operating Data System
This is an intermediate level discussion on Section 1031 Tax-Deferred Like-Kind Exchange transactions. Focusing on Forward, Reverse and even Build-to-Suit type exchanges as like-kind replacement property solutions. The program will … (0 comments)
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1031 exchanges: 1031 Exchanges - Simultaneous Exchanges - Basics - 04/21/08 11:36 PM
"USING A QI IS THE ONLY SAFE HARBOR PROVIDED BY THE REGULATIONS"
Lisa Lambert, Esq. (877) 646-1031 or LisaL@apiexchange.com
Asset Preservation,Inc. 800.282.1031 info@apiexchange.com www.apiexchange.com
… (2 comments)
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1031 exchanges: 1031 Exchanges - Why Exchangers Access to Funds Are Restricted - 04/21/08 11:28 PM
… (2 comments)
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1031 exchanges: 1031 Exchanges - What Not To Do - 04/21/08 11:19 PM
… (2 comments)
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1031 exchanges: 1031 Exchanges - DRE Accredited Seminar "Analyzing Investment Property"~ Bakersfield - 04/21/08 11:12 PM
Power of Analysis: How to Analyze Small Investment Properties
The Commercial Investment committee of the Bakersfield Association of Realtors has invited me to teach a seminar about how to analyze small investment properties. Attendees will learn how to evaluate the value of investment properties based on before and after-tax cash flow
How to … (2 comments)
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1031 exchanges: 1031 Exchanges - Back to Business - Professional Advisors - 04/21/08 01:54 PM
Clients Professional Advisors Are A Critical Part of the 1031 Process
Last week we went over how to calculate capital gain and estimate the capital gain tax due. We also reviewed what is involved in calculating the Net Adjusted Basis of an investment property. Great! Now that you know how to do … (0 comments)
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1031 exchanges: 1031 Exchanges - Sierra Summit Spring Skiing - 04/21/08 01:39 PM
Spring Skiing is Great!
I just spent the last two days skiing at Sierra Summit (located 60 miles east of Fresno Shaver Lake and Huntington Lake). The weather was spectacular. The cooler temperatures this weekend kept the snow in perfect "spring condition." Coverage is still excellent on the upper part of the mountain … (0 comments)
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1031 exchanges: Get your Exeter 1031 Exchange Services Brochure - 04/20/08 06:28 PM
Get your Exeter 1031 Exchange Services Brochure
Are you looking for more information on 1031 Exchanges and Exeter 1031 Exchange services? This informative brochure explains why Exeter 1031 Exchange Services, LLC is your ideal partner for forward, reverse and build-to-suit 1031 exchange transactions. Learn about the Exeter four-point promise of service excellence. … (0 comments)
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1031 exchanges: Try our discussion board - 04/20/08 05:58 PM
If you have questions we have the answers. Try out the Exeter Board, a forum where you can interact with professionals and investors involved in real estate and 1031 tax-deferred exchanges. Here, you can ask questions, trade ideas, voice your opinions and get a pulse on the real estate economy.
To contribute … (0 comments)
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1031 exchanges: Are TICs back as a replacement property? - 04/19/08 12:49 AM
The last four exchanges my clients have completed found replacement property in the tenant in common (TIC) world. It seems odd to me that the TIC properties as a replacement property for a 1031 exchange are on an upswing for my clients. Over the last year the TIC properties have been … (0 comments)
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1031 exchanges: Overview of Tenant-In-Common Investment Property Interests or TICs - 04/19/08 12:43 AM
Overview of Tenant-In-Common Investment Property Interests or TICs
As a Qualified Intermediary for 1031 Exchange transactions, one of the concerns that we often hear about from Investors when structuring 1031 Exchange transactions is the difficulty in locating, identifying and ultimately acquiring suitable like-kind replacement properties within the required 1031 Exchange deadlines.
Investors often … (0 comments)
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1031 exchanges: An Invitation to discuss 1031 Exchanges in Bakersfield CA - 04/19/08 12:19 AM
An Invitation to discuss
Section 1031 Tax-Deferred Exchanges
and
Annual Property Operating Data System
This is an intermediate level discussion on Section 1031 Tax-Deferred Like-Kind Exchange transactions. Focusing on Forward, Reverse and even Build-to-Suit type exchanges as like-kind replacement property solutions. The program will include the requirements, structures, processes, strategies, and compliance issues necessary to … (2 comments)
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1031 exchanges: Is Real Estate Picking Up? - 04/18/08 11:47 PM
The market seems to be picking up at least for 1031 exchanges in the San Joaquin Valley (Central Valley of California). This is going to be the biggest month I've had in two years. My phone has been ringing a lot more lately with questions about new exchanges, which means people … (6 comments)
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1031 exchanges: Guest Lecture at CSUF, (redo) - 04/17/08 07:06 PM
Guest Lecture at CSUF
I was invited to be a guest lecturer for a finance class at California State University, Fresno on the subject of 1031 exchanges. It was great to see such a high level of interest and optimism by the younger generation who are so excited about jumping into the … (0 comments)
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1031 exchanges: 1031 Exchanges - For Consumers ~ A Tale - 04/17/08 06:45 PM
Dear Consumers:
I want to share the experience of one of my clients that highlights where a lot of misunderstandings occur regarding what specific responsibilities your real estate team (agent/broker, escrow officer, lender, qualified intermediary) has during your transaction.
Once upon a time. . . there was an investor named Igor who owned a condo that he used as … (0 comments)
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1031 exchanges: 1031 Exchange - CALCULATING CAPITAL GAIN TAX~Putting It All together - 04/17/08 05:46 PM
SALE v. EXCHANGE
In the example below we bring the previous two posts together to demonstrate the power of a 1031 exchange and how it permits the taxpayer to defer the payment of capital gain tax, so that he/she can use the amount they would have paid the IRS as additional equity in … (0 comments)
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1031 exchanges: 1031 Exchanges - Calculating Capital Gain - 04/17/08 05:05 PM
Now that you've seen how to calculate the Net Adjusted Basis, you are ready to begin calculating the capital the seller may recognize on their taxes if they do not do a 1031 exchange.
You will take the current sale price, subtract the net adjusted basis, then subtract the closing costs. This … (0 comments)
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1031 exchanges: 1031 Exchanges - WHAT THE HECK IS NET ADJUSTED BASIS? - 04/17/08 04:52 PM
After reading some of the comments from "To Exchange or Not to Exchange? That is the question," I thought it would be helpful to post information about NET ADJUSTED BASIS.
The simplified way of determining whether there is a potential capital gain on the sale of property is to subtract the original … (0 comments)
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1031 exchanges: 1031 Exchanges - To Exchange or Not to Exchange? That is the question. POST #2 - 04/17/08 12:55 PM
REASONS NOT TO DO AN EXCHANGE
In the previous post we reviewed why an exchange may still be necessary to defer capital gain taxes even if the value of the investment property has declined. Now we will look at reasons some tax advisors may suggest that their clients NOT DO AN EXCHANGE. … (0 comments)
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1031 exchanges: 1031 Exchanges - To Exchange or Not to Exchange? That is the question. - 04/17/08 12:41 PM
AN EXCHANGE MAY STILL BE NECESSARY IN A DECLINING MARKET
IS AN EXCHANGE NECESSARY WHEN PROPERTY PRICES ARE DECLINING?
Generally, if the value of property at the time of sale is lower than the purchase there will not be a capital gain issue and hence, no need for a 1031 exchange to defer … (4 comments)
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1031 exchanges: 1031 Exchanges - Ever Wondered How to Discuss Exchanges With Clients? - 04/17/08 01:38 AM
WHAT IS A §1031 EXCHANGE?
Here's a concise way and simple way to describe a 1031 Exchange. . .
… (0 comments)
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1031 exchanges: 1031 Exchanges - Know Your QI - Post #2 - 04/17/08 01:29 AM
WHAT DO YOUR QI's CUSTOMERS SAY?
Asset Preservation, Inc. (API) is committed to providing everyone with our top notch customer service. Whether a first time exchanger, repeat client or a large national account, API strives to provide fast, knowledgeable and friendly customer service throughout the entire exchange process. It is rewarding to hear what … (0 comments)
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1031 exchanges: 1031 Exchanges - Stages Of A Delayed Exchange - 04/17/08 12:53 AM
"FOLLOW THESE SIMPLE STEPS FOR A SUCCESSFUL TRANSACTION"
… (0 comments)
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1031 exchanges: 1031 Exchanges - Choosing An Escrow Officer - 04/16/08 11:54 PM
Your Escrow Officer and 1031 Exchanges
YOUR CHOICE OF ESCROW OFFICER CAN IMPACT YOUR CLIENT'S EXCHANGE
Your choice of escrow officer is important no matter how complex (or straightforward) the transaction. However, when the transaction involves the sale of relinquished property in a 1031 exchange or the purchase of replacement property, your choice … (0 comments)
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1031 exchanges: During a 1031 Exchanges Who Should You ID Your Replacement Property To - 04/16/08 11:28 PM
During a 1031 Exchanges Who Should You ID Your Replacement Property To
We have all heard it before...what if I identified to my broker, my accountant, etc. Here is a quote from the new IRS Fact Sheet. We now know that brokers will not qualify. This should help deal with some of those clients. … (4 comments)
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1031 exchanges: Is there ever a situation in which the 1031 Exchange is not a good idea? - 04/16/08 11:22 PM
Is there ever a situation in which the 1031 Exchange is not a good idea? Yes, absolutely. 1031 Exchanges are not for everyone and may not be appropriate under certain circumstances. You would generally not want to structure a 1031 Exchange if you have an actual loss on the sale of … (7 comments)
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1031 exchanges: 1031 Exchanges - Time Well Spent? - 04/16/08 01:58 PM
AVERAGE AMERICANS SPENT 26.5 HOURS PREPARING TAXES
It took the average American more than 26.5 hours to prepare their taxes this year. This is an increase from 25.4 hours three years ago. It costs Americans an average of $207 to prepare their taxes, up from $185 three years ago. For more information, … (0 comments)
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1031 exchanges: Why Flipping and Section 1031 exchanges are not compatible - 04/15/08 04:50 PM
In recent years, flipping or purchasing a property with the intent to quickly resell for profit has been a common staple for those looking to make a return on their investment of sweat equity and speculation. TV offers programs of the experienced and the all too rosy eyed flipper learning the … (5 comments)
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1031 exchanges: A few questions to ask a 1031 Exchange Facilitator before you entrust him with your transaction. - 04/14/08 10:38 AM
I was reading an entry on Realty Times this morning that related to a topic that came up in a seminar we hosted a couple of weeks ago on 1031 exchanges. I found the title interesting "What to look for in a 1031 Exchange Facilitator but the content lacking or unclear.
So … (2 comments)
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1031 exchanges: Holding Title to Real Estate in an Entity During 1031 Exchanges Can Complicate Transactions - 04/13/08 05:05 PM
Holding Title to Real Estate in an Entity Can Complicate Transactions
The holding issue becomes substantially more complicated when you either hold legal title to the relinquished property, or intend to hold legal title to your replacement property in a partnership, corporation or multi-member limited liability company. The partnership, corporation or … (0 comments)
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1031 exchanges: Suggested Due Diligence Questions for your 1031 Exchange QI - 04/12/08 02:58 PM
Suggested Due Diligence Questions
Exeter 1031 Exchange Services, LLC has put together some suggested due diligence questions that you should ask prospective 1031 Exchange Qualified Intermediaries. While there are numerous other issues that should be considered, Exeter 1031 Exchange Services, LLC feels these are the most important issue that should be on … (0 comments)
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1031 exchanges: Sample 1031 Exchange Cooperation Clause - 04/12/08 02:46 PM
Sample 1031 Exchange Cooperation Clause
Legal Disclaimer
EXETER 1031 Exchange Services, LLC is pleased to provide the following sample 1031 exchange cooperation clause language as a courtesy to you and your legal, tax or financial advisors.
The following sample cooperation clauses may not be appropriate or suitable under certain circumstances. 1031 exchanges can be … (0 comments)
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1031 exchanges: Earnest Money Deposits, Extension and/or Option Payments Released to Investor Before Closing of Relinquished Property Sale - 04/12/08 02:42 PM
Earnest Money Deposits, Extension and/or Option Payments Released to Investor Before Closing of Relinquished Property Sale
Purchase and Sale Contracts ("Sale Contracts") often contain provisions or clauses that provide for the early release (payment) of earnest money deposits, extension payments, option payments or other funds before the close of the relinquished … (0 comments)
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1031 exchanges: Domestic Property versus Foreign Property in 1031 Exchanges - 04/11/08 11:00 PM
Domestic Property versus Foreign Property
Property sold in one state may be exchanged for property located in another state, provided they are located with the United States of America. Only domestic (United States) property can be exchanged for domestic property and non-domestic (foreign) property can be exchanged for non-domestic property. Domestic property can … (2 comments)
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