Section 1031 Real Estate and Personal Property Exchanges
Posted in Newbridge Exchange on Jun 28th, 2010
If you remember when a trip to your vacation property was a relaxing time with friends and family, you probably have owned it for a while. As the years wane on, the fun is replaced with trips that include maintenance and upkeep, paint brushes and lawnmowers. A sell decision gets easier as the “to-do” list gets longer. [...]
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 Newbridge Exchange on Jan 11th, 2010
Once the preferred investment vehicle, commercial real estate in many locations around the country is stressed. Tenant vacancies and the inability to refinance have increased the burden on investors anxious to cut their losses and reinvest in more productive or diversified real property. There are action steps to consider in breaking up the doldrums of [...]
Posted in Newbridge Exchange on Nov 30th, 2009
The object in an exchange is to defer the capital gain tax, recapture of previously taken depreciation and any state gain tax. If you go to the closing without employing a Qualified Intermediary (QI) to handle the sale as an exchange, the tax will be triggered as soon as the cash is touched.
Posted in Newbridge Exchange on Nov 18th, 2009
The best solution for an investor who wants to acquire a new location and a facility to exactly matches the investor’s needs is to use the mechanism of a “build-to-suit” exchange. It requires that the new property be acquired by an exchange accommodation titleholder (EAT) and that the fit up be done by the EAT. All of [...]
Posted in Newbridge Exchange on Nov 10th, 2009
In its simplest terms, a Qualified Intermediary (QI), facilitating a Section 1031 Exchange, acts as a third party in the sale of Relinquished Property (old property). The QI’s job is twofold: a) memorialize and document the intent of the taxpayer and b) function as escrow agent for the net proceeds from sale. Section 1031 is [...]
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 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 Newbridge Exchange on Sep 1st, 2009
After spending the last seven years honing my skills as a Qualified Intermediary, I am pleased to announce the launch of Newbridge Exchange, LLC to continue the facilitation of Section 1031 Exchanges under a new masthead. I have positioned the company to pursue stronger connections with my clients, well before any “sell” decision is arrived [...]
