Does Seller Financing Kill a §1031 Exchange?
So, you’re involved in a difficult real estate deal. It’s a tough market. The Sellers think they have gold, and the Buyers think it’s still 2008. After protracted negotiations, the parties finally agree to terms and...
Can an Investor improve a Replacement Property using proceeds from a §1031 Exchange?
Can an Investor improve a Replacement Property using proceeds from a §1031 Exchange without paying capital gain on it? The simple answer is yes. Proceeds from a §1031 Exchange may be used to make improvements to a Replacement Property. A...
Can a client buy a Replacement Property first and then sell the Relinquished Property?
Here is a common question. Can a client buy a Replacement Property first and then sell the Relinquished Property? At first blush, because the rules for a standard §1031 Exchange indicate that the property owner cannot own both properties at the same time, the answer might seem to be “No”. However, the answer is actually yes. A property owner can do a Reverse Exchange. Here’s a quick explanation of how it works and why it’s allowed.
Requirements for Full Tax Deferral
Many real estate Investors are confused about what they need to do to fully defer capital gain, and payment of capital gain taxes in a §1031 Exchange. Case in point. An Investor sells a shopping center for $2 million. His capital gain is $500,000.00. At...
Timing and §1031 Exchanges
They say that real estate success is all about location, location, location. However, it could be argued that it is also about timing, timing, timing. For example, finding a great investment property is about location but also about timing. Timing is also important...
