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Tag Archives: assumption of liability

What does assumption of liabilities mean in a 1031 Exchange?

Sunday, March 6, 2011

In a 1031 exchange, the assumption of a liability by the other party (or transfer of your property subject to a liability) is treated as boot received by you. It’s called mortgage relief. In figuring your net mortgage relief, you may offset against it your assumption of a liability (or transfer of property subject to [...]

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I want to 1031 Exchange into a property that has a mortgage. How does that work?

Monday, January 3, 2011

In a 1031 exchange, the assumption of a liability by the other party (or transfer of your property subject to a liability) is treated as boot received by you. It’s called mortgage relief. To figure out your net mortgage relief, you may offset against it your assumption of a liability (or transfer of property subject [...]

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