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 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 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 [...]
