Section 1031 Real Estate and Personal Property Exchanges
Posted in Newbridge Exchange, Relinquished Property Options on Feb 17th, 2010
Investment in forestland for recreation, appreciation, development or merchantable timber has its benefits and burdens. One of the biggest burdens at sale is the payment of capital gains tax. With a little planning, the sale of forestland can be structured to defer both state and federal capital gains tax consequences. Internal Revenue Code Section 1031 [...]
Posted in Relinquished Property Options on Feb 4th, 2010
Recently, I met with a new client to discuss various strategies to divest some of his properties. With three grown children now in the family business, the separation of assets was starting to become a nuisance with cross management issues. Keeping business and family matters segregated is often difficult, but like anything, it requires a [...]
Posted in Relinquished Property Options on Dec 8th, 2009
The term “like-kind” is the most misunderstood aspect of a Section 1031 exchange. There is no need for it to cause confusion for investors not accustomed to handling their real estate sales as an exchange. Investors often assume a literal interpretation of the term and miss the point of the definition encompassed in the Internal [...]
Posted in Newbridge Exchange, Relinquished Property Options on Nov 2nd, 2009
The Internal Revenue Code provides a variety of tax saving opportunities for savvy planners. For example, Section 1031 of the Code details tax deferred exchanges. Section 121 provides direction on the sale of a personal residence and the allowances for exclusion from tax. Guidance on how these two sections intersect and complement each other is [...]
Posted in Relinquished Property Options on Oct 20th, 2009
Added to the Internal Revenue Code in 1921, Section 1031 is the best planned escape from capital gains tax and recapture of depreciation ever conceived. There is no reason to pay any tax that can be deferred throughout your lifetime and it will not leave a burden for your heirs. The concept is a simple [...]
Posted in Newbridge Exchange, Relinquished Property Options on Sep 21st, 2009
There are two types of real estate that can be sold with advantageous tax treatment, your primary residence and your business/investment property. Favorable treatment exists for the sale of a personal residence if the property has been the primary residence of the taxpayer for two of the preceding five years. Section 121 of the Internal [...]
Posted in Relinquished Property Options on Sep 15th, 2009
An option with social impact is to sell the existing or relinquished property using a bargain sale. The notion of a bargain sale (a sale where the realized value is less than market value) conjures up visions of tax loss not capital gains. Bargain sales, whether in full or in part, to a qualified 501(c)(3) [...]
