taxfree exchanges: Related Party Transaction - 1031 Exchange
- 05/07/08 09:12 AM
If you were to exchange your property utilizing the benefits of IRC Section 1031, you can defer the tax on the gain, allowing reinvestment of all your equity in to one or several investment properties. However, great care must be taken when investors tries to complete their exchange by either selling or buying to a related family party. Under IRS's definition, related parties include, but not limited to, immediate family members, such as brothers, sisters, spouses, ancestors and lineal descendents. Related parties do not include stepparents, uncles, aunts, in-laws, cousins, nephews, nieces and ex-spouses. A corporation, limited liability company or partnership … (1 comments)
Self-directed IRA transactions, investments, retirement administrator. Over 20 years of experience, and have performed over 5000 transactions passing all IRS audits and reviews. Adelphi Retirement Management, Inc.
If you were to exchange your property utilizing the benefits of IRC Section 1031, you can defer the tax on the gain, allowing reinvestment of all your equity in to one or several investment properties. However, great care must be taken when investors tries to complete their exchange by either selling or buying to a related family party. ;)
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