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We are considering selling our portrait photography studio with about one acre of land. We want to know if we can use the 1031 exchange rule to use the money that would be taxed to reinvest into rental property.

Sunday, January 15, 2012

Hi Elaine! 1031 Exchange properties are those considered a like-kind by the IRS. This includes business real estate and land. So if you are selling a portrait studio, if the business owns the building and the land that it occupies, you may sell it and exchange for a rental property. However, it should be noted that you cannot sell the business itself in exchange for real estate. This will not work. The like-kind rule covers the equipment in a business, though it must be exchanged for like-kind business equipment, ie computers for computers, desk chairs for desk chairs, etc.

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Filed in 1031 Exchange Qualifies | Tagged | Comments (0)

Hi,I have three small rental properties (one duplex and two four units) in Minnesota that I would like to exchange for property on the island of Oahu, Hawaii. I’m wondering how realistic and possible this might be. I would also like to exchange my personal residence as well. Thanks, Bruce

Sunday, October 23, 2011

The 1031 Exchange for property in Minnesota for property in Hawaii would work if both properties qualify for 1031 Exchange. However, your personal residence would not qualify for 1031 exchange.

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Filed in 1031 Exchange Qualifies | | Comments (0)

I sold a property last month, is it too late to 1031 Exchange it now?

Sunday, October 23, 2011

 Hi, I am interested in determining if I can qualify for a 1031. I sold a property on Sept 22, 2011. I did deposit the cash into my bank account. I am now bidding on another property and could close before the end of the month. The properties are both investment properties. Can I still qualify? Can you assist me in the transaction? Thank you.

1031 Exchange must happen at the time of closing. Because your property has already closed, you now have access to the funds, this means you cannot 1031 Exchange. However, there are times when you have closed sale on a property but the money is still in escrow and out of your control. If that is the case, there may still be time to setup a 1031 Exchange. Check out http://www.realtyexchangers.com for more information.

 

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Filed in 1031 Exchange Qualifies | | Comments (0)

Can I do an exchange out of an LLC and purchase the replacement property of which I am also a member of another LLC?

Saturday, August 13, 2011

Chain of title requirements state that a property must pass from one entity to the same entity on the 1031 exchange property.

If ABC Company, LLC owns a piece of land and sells it for 1031 Exchange, ABC Company LLC must purchase the replacement property as ABC Company LLC. No exceptions. What this means for the shareholders of ABC is that individual partners cannot split out their shares and purchase something else…unless the individual partner names are listed in the title of the property being sold.
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Filed in 1031 Exchange Replacement Properties | | Comments (2)

My father is selling his farm and purchasing another one out of state. He wants to add my name to the new purchase when he does the 1031 exchange. My name was never on the current property. Can he do this at the time of the exchange or does he has to wait a certain amount of time?

Saturday, August 13, 2011

You cannot change the title names during a 1031 Exchange. Better to Quit Claim Deed AFTER the exchange is completed. Please contact us for 1031 Exchange Qualified Intermediary services. We charge $295 to sell your property and $200 to purchase another.

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Filed in 1031 Exchange General Questions | | Comments (0)

I sold a property on November 30, 2010 and entered into a 1031 exchange via an accomodator. My tax preparer filed my return on April 15, 2011 prior to my closing, but also filed for an extension. Now that my exchange has completed, can I file an amended return, or is my exchange invalidated? should he not have filed the return, and just the extension?

Saturday, August 13, 2011

1031 Exchanges expire 180 days after you sell your property. The exception is when you taxes are due. Tax Time Trumps your 180 expiration … unless you file for the extension. Since you filed for the extension, you should be able to get the full 180 days of your 1031 Exchange period, regardless of whether your taxes have been filed or not. The best best is to check with your CPA or Attorney as we obviously don’t know your specific situation and there may be issues that we couldn’t know.

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Filed in 1031 Exchange General Questions | | Comments (0)

My parents sold their business in Pennsylvania and bought a property in Florida under the 1031 exchange. They would like to add me to the deed of the house they bought but are not sure if this will effect the 1031. Please advise.

Tuesday, July 26, 2011

This should not be a problem, since the 1031 Exchange has already happened and it is over. Adding your name to the title should not be a problem, though the procedure should be discussed with your Tax Attorney or CPA.

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Filed in 1031 Exchange General Questions | Tagged | Comments (0)

Can a partner in a limited Partnership participate in a 1031 Exchange as a separate person?

Thursday, July 14, 2011

No. Because of the Chain of Title requirement, a Partnership can complete a 1031 Exchange as a single entity…the partners don’t get to split out their shares an buy separate properties.

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Filed in 1031 Exchange General Questions, 1031 Exchange Qualifies | Tagged | Comments (0)

When can I have my 1031 Exchange Proceeds back?

Friday, April 15, 2011

It all depends on whether you have already identified your 1031 exchange replacement properties. If you already have, then you must wait until your 1031 Exchange Period is over before you should collect your money. If you have not yet identified your replacement properties, then you may have your proceeds back, though these would now be subject to Capital Gains tax.

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Filed in 1031 Exchange General Questions | Tagged | Comments (0)

Can you exchange with your own property?

Monday, March 21, 2011

In order for a 1031 Exchange to be completed, there must be an exchange of properties. You cannot 1031 Exchange with yourself.

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Filed in 1031 Exchange General Questions | Tagged | Comments (7)