Many real estate investors hold their properties in trusts. Trusts are popular estate planning tools as well, and, in many cases, children and other family members will inherit real estate that is held in a trust at the time...
You might decide to hold real estate in a limited liability company (LLC) for many reasons. Compared to other types of business entities, LLCs are relatively straightforward and require relatively little in terms of formal...
What is the Difference Between a 1031 Exchange Facilitator and a Qualified Intermediary?
July 31, 2024
If you are planning on conducting a like-kind exchange, do you need a 1031 exchange facilitator? Do you need a qualified intermediary? Do you need both? What’s the difference? These are some of the most common questions we...
Conducting a like-kind exchange under Section 1031 of the Internal Revenue Code (also referred to as a 1031 exchange) can provide access to substantial—and potentially indefinite—savings on federal income tax. But, strict...
1031 Exchanges Involving Overseas Real Estate
June 28, 2024
If you own real estate in a foreign country, or if you are planning an acquisition in a foreign country, can you conduct a 1031 exchange to avoid triggering immediate capital gains tax liability in the U.S.? As a general...
5 Reasons to Consider a 1031 Exchange
June 14, 2024
If you are preparing to sell a piece of real estate, why should you consider a 1031 exchange? Under the right circumstances, working with a 1031 exchange expert instead of simply selling one asset and buying another can...
Section 1031 of the Internal Revenue Code (IRC) is a powerful tool for companies and individuals that invest in real estate. Under Section 1031, real estate investors can buy and sell properties without recognizing...
1031 Exchanges in a Changing Real Estate Market
April 30, 2024
Conducting a 1031 exchange affords the opportunity to indefinitely defer recognizing gain (and thus indefinitely defer paying tax) when selling one real estate asset in order to acquire another. However, there are many...
In a typical 1031 exchange, you sell one property (the “relinquished property”) in order to buy another (the “replacement property”). But what if you identify the ideal replacement property before you can sell the...
Using 1031 Exchanges for Vacation and Second Homes
March 29, 2024
Section 1031 of the Internal Revenue Code allows taxpayers to indefinitely defer gain on the sale of real estate held for business or investment purposes. As a general rule, this means that Section 1031 does not apply to...