ranches: Concise Overview of 1031 Exchanges - Series II
- 05/03/08 08:27 AM
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 proceeds from the sale of the relinquished property. And, you must replace the debt that was paid off on the sale of the relinquished property with an equal amount of debt on the like-kind replacement property. You can always add more cash into your purchase of your like-kind replacement properties, … (2 comments)
ranches: Concise Overview of 1031 Exchanges - Series I
- 05/02/08 03:08 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, tax and financial advisors before entering into any real estate transaction, especially a 1031 Exchange. This article has been written as a concise overview of 1031 Exchanges. It is only a brief summary to assist you in understanding the very basic 1031 Exchange requirements. You can read an Introduction to Section … (0 comments)
ranches: What is Qualified Use in 1031 Exchanges
- 05/01/08 03:22 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 rental, investment or use in your business will not be considered to be qualified use property and will generally not qualify for 1031 exchange treatment. For example, property acquired by you with the INTENT to fix-up and then sell ("flipping") will actually be classified as property HELD for SALE rather … (0 comments)
ranches: 1031 Exchange into a 721 or an upREIT
- 05/01/08 02:02 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 Investment Trust (REIT). This is called a 721 exchange - also known as an upREIT or 1031/721 exchange. You would typically utilize the upREIT in conjunction with selling relinquished property and acquiring like-kind replacement property pursuant to Section 1031 of the Internal Revenue Code. Once the replacement property has been held as … (0 comments)
ranches: Local Knowledge, Nationwide
- 05/01/08 01:58 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 Qualified Intermediary ("Accommodator"). Exeter 1031 Exchange Corporation is a local 1031 Exchange Qualified Intermediary, with roots firmly planted in this community. But we're backed by the financial strength, stability and national reach of a company that's been in the real estate settlement services industry for more than 80 years. We have … (0 comments)
ranches: 1032 Exchange, What is it?
- 05/01/08 01:36 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 type of exchange transaction does not apply to real estate and there is no need for a Qualified Intermediary. Steve
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ranches: 1031 or 1033 exchange questions
- 04/30/08 03:57 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 any questions about exchanges please give me a call, and we can review all the options that are available to you, and your clients. … (4 comments)
ranches: 1031 Exchange what is it?
- 04/30/08 03:49 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 in your business ("replacement property") allowing you to defer your Federal, and in most cases, state capital gain and depreciation recapture income tax liabilities. It is important to note that 1031 exchange transactions are tax-deferred exchanges - not tax-free exchanges - as many speakers, authors and advisors frequently refer to them. Your … (2 comments)
ranches: Can Closing Costs be included in a 1031 Exchange
- 04/23/08 05:13 PM
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 are added to the basis of the replacement property C. Most tax experts conclude that the payment of many non-recurring costs of sale or purchase from the exchange proceeds should not create taxable boot i. Title insurance premiums ii. Escrow or closing agent fees iii. Recording fees iv. Intermediary fees v. Documentary transfer taxes vi. Legal fees vii. Property inspections D. … (4 comments)
ranches: IRC Section 121 – Exclusion of Capital Gain from the Sale of Principal Residence IRC
- 04/23/08 04:38 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 of last 60 months 1. Months do not have to be consecutive iii. Application is limited to 1 sale every 2 years iv. A portion or all of the taxable gain may be excluded if the failure to comply is due to change of employment or health, or other unforeseen circumstances … (0 comments)
ranches: Partnership interest and 1031 Exchanges
- 04/23/08 04:28 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 the exchange 3. Partnership completes exchange; reorganizes under co-tenancy ownership, where two or more owners each hold an undivided fractional interest in property; distributes property according to each co-tenant's pro-rata interest 4. Partnership reorganizes under co-tenancy ownership where each owner has an undivided fractional interest in property; each co-owner pursues its individual investment goals a. Has the … (2 comments)
ranches: IRC Section 1033 – Involuntary Conversions of Property IRC §1033
- 04/23/08 04:18 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 - Eminent domain a. Replacement period of 3 years If you have any questions relating to 1031 exchanges or the qualified use requirement, please contact me at: EXETER 1031 EXCHANGE SERVICES, LLC Steven W. Monk Vice President and Regional Manager … (0 comments)
ranches: Property that can not be 1031 Exchanged
- 04/21/08 05:41 PM
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 of trust or beneficial interests vii. Choses in action EXETER 1031 EXCHANGE SERVICES, LLC Steven W. Monk Vice President and Regional Manager … (2 comments)
ranches: Holding Period for 1031 Exchanges
- 04/21/08 05:12 PM
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 controlled group or that are controlled by the same individuals c. A grantor and a fiduciary or a fiduciary and a beneficiary of the same trust d. A partnership in which a person owns directly or indirectly more than 50% of the capital interest or profits interest e. A corporation and a partnership in which the … (0 comments)
ranches: Deferring 100% of the Gain During a 1031 Exchange
- 04/21/08 05:09 PM
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 relinquished property Treas. Reg. §1.1031(d)-2 i. If the debt on the replacement property is less than the debt on the relinquished property, then taxpayers may contribute additional cash to balance the exchange EXETER 1031 EXCHANGE SERVICES, LLC Steven W. Monk Vice President and Regional Manager … (0 comments)
ranches: Completing a Partial 1031 Exchange
- 04/21/08 05:06 PM
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 net reduction in replacement property debt is known as mortgage boot or mortgage relief iii. No losses are recognized under Section 1031, even if non-qualifying property is received in the exchange IRC §1031(c) iv. Seller carry-back financing cannot be a part of the exchange unless the taxpayer can sell the note at a discount to … (2 comments)
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 successfully complete a 1031 Exchange. As an added bonus participants will be given a basic understanding of Annual Property Operating Data (APOD) report, an essential element to the analysis of investment property.
Presented by:
Mary Sawyer, CCIM President, & Chief … (0 comments)
ranches: Get your Exeter 1031 Exchange Services Brochure
- 04/20/08 11:28 AM
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. Request Your Brochure...
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ranches: Try our discussion board
- 04/20/08 10:58 AM
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 to the Exeter Board you must register as a user, which takes only a few minutes. Just click the link below. http://exeterboard.com/forums/ Steve … (1 comments)
ranches: Are TICs back as a replacement property?
- 04/18/08 05:49 PM
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 exceedingly quiet, now however, they seem to be back as a favorite option for replacement property. Click here to find out more about what TIC properties are. http://activerain.com/blogsview/475176/Overview-of-Tenant-In EXETER 1031 EXCHANGE SERVICES, LLC Steven W. Monk Vice President and Regional Manager … (0 comments)
Concise Overview of 1031 Exchanges - Series II
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