Seller Financing & 1031 Exchanges
Sometimes it is necessary or desirable for an Exchanger carry back a promissory note upon the sale of their relinquished property. This is generally the result of the buyer’s inability to secure adequate financing to purchase the property. Treas. Reg. §1.1031(k)-(1)(j)(2) provides guidance for coordinating the tax deferral benefits of IRC §1031 with the installment […]
Partnership Issues In A 1031 Exchange
An important issue when addressing partnership exchanges is the investment objective of the various partners. When all of the partners want to exchange, it’s easy to structure an exchange under Section 1031. It is, however, more difficult when partners have different investment objectives. Under IRC §1031(a)(2) (D), the IRS expressly prohibits the exchange of partnership […]
Selling a Business That Owns Real Estate: How to Use a 1031 Exchange for Tax Deferral
If you’re planning to sell a business that owns real estate, you might be able to take advantage of a 1031 exchange to defer capital gains taxes on the sale of the real estate portion. While business assets themselves are not eligible for a 1031 exchange, the real estate can qualify, allowing you to reinvest […]
Peak 1031 Exchange advocates for preservation of 1031 exchanges in response to Biden administration’s 2025 budget proposal
Experts urging public to voice their support to congressmembers for 1031 exchanges and the vital role they have in fostering economic growth and stability. As the Biden administration’s FY 2025 Budget proposal threatens to impose hard limits on IRC Section 1031 like-kind exchanges, experts at Peak 1031 Exchange are advocating for their preservation. These proposed […]
Maximizing Depreciation Benefits in 1031 Exchanges
Real estate investors are well-versed in the advantages and disadvantages of 1031 exchanges. While the benefits of deferring taxes on gains and depreciation recapture are widely known, effectively managing depreciation within the exchange can be intricate. Nonetheless, navigating through the administrative complexities can lead individuals to optimize their depreciation strategies, thereby enhancing their free cash […]
Best 1031 Exchange Companies in California
With high tax rates and even higher home prices, savvy property owners recognize California as the prime location for 1031 exchanges. There are however many rules and regulations to understand and it is imperative that you receive guidance from a competent and highly respected Qualified Intermediary to ensure full compliance with IRC Section 1031. Inside1031.com […]