Skip to content

Category Archives: 1031 Exchange Replacement Properties

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 [...]

Also filed in | | Comments (2)

Can I take Earnest Money from my sales proceeds?

Monday, March 21, 2011

No.  Your sales proceeds may ONLY be used to purchase 1031 Exchange replacement properties. The best option is to use your own funds for Earnest Money deposits and then get these back at the time of closing. Tweet

Also filed in | Tagged | Comments (0)

Do you get taxed on a gain in a like kind exchange?

Monday, March 21, 2011

In a 1031 Exchange, you continue your investment by selling your qualified, like-kind property by purchasing another qualified, like-kind property. Any gain you would experience from the sale of your property would be passed on to the future sale of the property or properties that you purchase, so there is no gain or tax to [...]

Also filed in | Tagged | Comments (1)

How do I figure the basis in my 1031 Exchange Replacement Property?

Friday, February 25, 2011

The rules for figuring basis for property acquired in a 1031 exchange take into account the gain is not forgiven, but “postponed” This is accomplished by providing a “substituted basis” for the property received. The basis of your Relinquished Property exchanged without recognition of gain becomes the basis of your new property. Your old basis [...]

Also filed in | Tagged | Comments (0)

Can I use my personal funds for a deposit on a 1031 exchange property?

Friday, February 18, 2011

During the 1031 Exchange Period (that time after you’ve closed on your property and before you purchase its replacement) it is sometimes necessary to put down a deposit on a replacement property. Rather than use your Exchange proceeds for this purpose (Don’t do this by the way, we strongly advise against this!), we recommend using [...]

Also filed in | | Comments (0)

Can you split a 1031 Exchange?

Wednesday, February 16, 2011

IRS 1031 Exchange is a vehicle tax-payers have used for 20 years to defer their capital gains tax by selling qualified, like-kind  investment or business property. 1031 Exchange have been executed by single and married tax payers, businesses and partnerships, LLC’s, Trusts, TIC’s and Corporations. In order for there to be an exchange, the name [...]

Also filed in | Tagged | Comments (0)

In a 1031 Exchange, what if the owner occupies one of the units of a 4-plex? Restrictions?

Tuesday, February 15, 2011

Remember, that a 1031 Exchange is for like-kind property. The dwelling  that the owner occupies,regardless of whether it’s a home or an apartment, is not considered like-kind with the rest of the unit in the complex, it’s considered real estate held for personal use, which has a different tax provision. What we are discussing here is [...]

Also filed in | Tagged | Comments (0)

How many houses can you identify with a 1031 Exchange?

Monday, February 14, 2011

It depends on which 1031 Exchange Identification rule you choose to follow. There are 3 that were set down by the IRS. The 3 property rule always you to identify and purchase up to 3 properties regardless of fair market value. The 200% property rule allows you to identify and purchase as many properties as [...]

Also filed in | | Comments (1)

In a 1031 Exchange, how many Replacement Properties can I have?

Sunday, February 13, 2011

In a 1031 Exchange, you have 3 choices for determining how many Replacement Properties to Identify. These are the 3 Identification rules set down by the IRS for 1031 Exchange. You may choose which of these rules to follow at any time during the 45 day Identification period. One you have chosen which rule to [...]

Also filed in | Tagged | Comments (6)

Does Foreign Real Estate Qualify For 1031 Exchange?

Sunday, February 6, 2011

One of the provisions of the 1031 Exchange is that in order for a property to qualify for Capital Gains Tax Deferment is that is must be in one of the 50 US States or the US Virgin Islands. So the answer to your question, “Does Foreign Real Estate Qualifty for IRS 1031 Exchange?”, the [...]

Also filed in | Tagged | Comments (0)