Section 1031 Real Estate and Personal Property Exchanges
Posted in Uncategorized on Mar 22nd, 2010
Purchasing a multi-family home is a great way to acquire a starter home and have the added benefit of receiving rental income to help out with the mortgage payment, taxes and maintenance. If the goal is to live in the property just long enough to build some equity and ownership experience, then you will face [...]
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 Uncategorized on Jan 22nd, 2010
During the real estate hey days of the early 2000’s, many foreign residents made their way to the US to see if they could get in on the rising market fever. Vacationing in the United States and reconnecting with family, it became attractive to acquire a piece of the rock on this side of the [...]
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 Uncategorized on Dec 18th, 2009
As the year draws to a close, it’s time to take one last look at any opportunities to lessen your individual tax burden. While the best laid plans are done far in advance of the actual event, it may not be too late to initiate a plan to save some serious money. If your situation [...]
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 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 Personal Property Exchanges on Oct 27th, 2009
We all applauded when bonus depreciation for 2008-2009 was announced as a way to justify new equipment purchases. Many buying decisions were delayed as the economy weakened and time was marching on as tired equipment was constantly being repaired to keep businesses running smoothly. The bad news is that accelerated (bonus) depreciation will result in [...]
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 [...]
