1031 Exchange Expert: Qualified Intermediary, 1031 Exchanges, Accommodator, California and the U.S., etc., etc,

HOW LONG TO HOLD "HOW LONG MUST AN INVESTMENT PROPERTY BE HELD FOR THE IRS TO CONSIDER IT A LIKE-KIND PROPERTY?" IRC §1031 states that property "held for productive use in a trade or business or for investment" must be exchanged for like-kind property. There is much  confusion and misinformation ...

REQUIREMENTS FOR FULL DEFERRAL"WHAT ARE THE REQUIREMENTS FOR FULL TAX DEFERRAL IN AN EXCHANGE?" Some real estate investors confuse what is required for full tax deferral in an exchange with calculations involved in determining their accumulated capital gain. The requirements for full tax deferral...

THE API ADVANTAGETM  As a leading national qualified intermediary, Asset Preservation, Inc. (API) is committed to providing its exchange clients with unmatched customer service and the highest level of security available in the §1031 exchange industry. From the client's first contact with an API ...

HOW SECURE ARE THE EXCHANGE FUNDS?"IT'S THE MOST IMPORTANTQUESTION TO ASK AN INTERMEDIARY" BEWARE Security of the exchange funds is paramount to all other aspects of an exchange. Many property owners are not aware that, with the exception of minimal regulations in the state of Nevada, Qualified I...

 *****The information provided is for educational purposes only. It is not legal or tax advice. Accordingly, the taxpayer  should review the details of the specific transaction with taxpayer's own legal or tax advisor*******.This post is in response to one of the comments on the first Closing Cos...

CLOSING COSTS (#50) "WHAT COSTS CAN BE CONSIDERED ACCEPTABLE EXCHANGE EXPENSES?"   A frequently asked question is "What expenses can be deducted from the exchange proceeds without resulting in a tax consequence?" Although the IRS has not published a complete list of qualifying expenses, there ar...

INVOLUNTARY CONVERSIONS"HANDLING INSURANCE PAYOUTS" WHAT IS AN INVOLUNTARY CONVERSION?   Certain involuntary dispositions of appreciated property are eligible for income tax deferral under Internal Revenue Code §1033.  Events that result in an involuntary conversion include theft, damage resultin...

PARTNERSHIPS AND 1031 EXCHANGES (#49)"WHAT HAPPENS WHEN ONLY ONE PARTNER WANTS TO EXCHANGE?" A partnership may exchange property for other property of like-kind. However, IRC section 1031(a)(2)(D) specifically prohibits exchanges of partnership interests. This means that an Exchanger cannot buy i...

SELLING APPRECIATED PROPERTY"A SUMMARY OF TAX ADVANTAGED STRATEGIES" The Federal Tax Code provides ways a property owner can dispose of, exchange or sell an appreciated property and receive tax benefits. Some alternatives are described below. IRC Section 121 enables a homeowner to exclude capital...

DEPOSITS IN AN EXCHANGE (#94)"HANDLING EARNEST MONEY DEPOSITS IN AN EXCHANGE" Most offers to purchase real estate are accompanied by the Buyer's delivery of a check to the Seller generally referred to as an "Earnest Money Deposit".  Depending on the terms of the purchase agreement, the earnest mo...