exchange: 1031 Exchange: Variations of executing a 1031 (Part 5 of 6) - 12/31/08 05:56 AM
Types of 1031 Exchanges Simultaneous Exchange - When properties are exchanged on the same day.
Delayed Exchange - The most common type, 3 parts:
Sale of relinquished property  Identify new property, or properties.  (45 days) 3 Property Rule: 3 properties no matter what the fair market value 200% Rule: Any number of properties as long as the aggregate fair market value does not exceed 200% of the fair market value of all the relinquished properties; 95% Rule: Any number of properties without regard to value - provided 95% of the value of the identified properties are acquired Purchase of replacement property … (0 comments)

exchange: 1031 Exchange: Timelines and Property Options (4 of 6) - 12/30/08 09:55 AM
Replacement Property - In a 1031 exchange, a replacement property, or properties, must be designated within 45 days of the sale of relinquished property. The replacement property, or properties, chosen within the 45 days must go to settlement within 180 days of sale of relinquished property.  If not the 1031 is dissolved.  The only penalty is the capital gain tax. 
Example properties - "Like-Kind" is what it is all about.  Like-kind refers to a property's nature or character.  i.e. - Multi-units, apartment complexes, raw land, shopping malls, storage centers, warehouses, parking lots, office buildings, hotels, single family, farms, etc. One may … (0 comments)

exchange: 1031 Exchange: Qualified Intermediary (Part 3 of 6) - 12/23/08 12:48 AM
A Qualified intermediary is a third party that enters into a written agreement with the tax payer, and facilitates the exchange for the taxpayer The written agreement between the taxpayer and the intermediary expressly omits the taxpayer's rights to receive, pledge, borrow or otherwise obtain the benefits of the money or property held by the intermediary.  QI acquires relinquished property, transfers the relinquished property, acquires the replacement property, and transfers it to the seller. QI also performs tasks such as paperwork, set-up of holding account, and assuring correct legal actions QI does not have to receive or transfer title QI to … (0 comments)

exchange: 1031 Exchange: A Must Know for Real Estate (Part 1 of 6) - 12/20/08 06:11 AM
Where did the 1031 Exchange get its fancy name from? The fancy name is taken from IRS code 1031. In a nutshell here is what a 1031 allows; when executing the sale/purchase of an investment property via a 1031 exchange, a taxpayer is allowed to defer capital gain taxes on like-kind exchanges. All properties utilized in a 1031 must be used for investment purposes.
Under normal circumstances, selling an investment property would bring upon a capital gain tax.  To properly execute a 1031 exchange, you will need a Qualified Intermediary (QI).  A QI is a third party that receives the proceeds of the investment property sale and … (6 comments)