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The IRS’s depreciation recapture rules can play an important role in determining a business’s tax liability in connection with a 1031 exchange. While it will often be possible to fully defer tax liability associated with...

From the definition of a “like-kind” property to the tax benefits involved, there are several common misconceptions about 1031 exchanges. To make informed decisions, real estate investors should work with an experienced...

Conducting a 1031 exchange provides the opportunity to indefinitely defer federal tax liability on gain realized from the sale of appreciated real estate. But strict requirements apply, and failure to comply with any of them...

Buying a replacement property before selling a relinquished property is possible with a reverse 1031 exchange. Conducting a reverse 1031 exchange involves establishing an Exchange Accommodation Titleholder (EAT) to hold the...

While conducting a 1031 exchange can have significant tax benefits, businesses and real estate investors must be careful to avoid mistakes that could result in the loss of indefinite tax deferral. Mistakes during the 1031...

Under the Internal Revenue Code, taxpayers have three primary options for conducting a 1031 exchange. Delayed exchanges, reverse exchanges, and improvement exchanges all offer different benefits in different circumstances....

1031 exchanges are subject to multiple eligibility and timing requirements. These include the “like-kind property” requirement and the 45-day and 180-day deadlines for identifying and acquiring replacement properties,...

Conducting an improvement exchange under Section 1031 provides the opportunity to use funds from the sale of a taxpayer’s relinquished property to pay for improvements to the taxpayer’s replacement property. When...

When you conduct a 1031 exchange, you are required to report the exchange to the Internal Revenue Service (IRS). This is the final step for claiming the indefinite tax deferral authorized under Section 1031 of the Internal...

Conducting a like-kind exchange under Section 1031 of the Internal Revenue Code is a complex process that is subject to several strict requirements. Meeting these requirements is essential—as failing to do so can result in...