Important Information for Investors Beginning an Exchange
From October 17 – December 31, 2020
Do Not File Your 2020 Income Tax Return Until Your Exchange Has Been Fully Completed.
The time frame you have to complete the acquisition of your replacement property ends at midnight on the earlier of the 180th day after the date you transferred the relinquished property OR the due date (including extensions) for your income tax return for the taxable year in which the transfer of the relinquished property occurs. (U.S. Treasury Regulations section 1.1031(k)-1(b)(2)).
This means if the 180th day following the closing of your first relinquished property falls after the due date for your 2020 tax return (this year, for individuals, April 17, 2021, you must file an application for extension of time with the IRS to extend the due date. If you do not file for an extension, you will NOT be able to acquire any replacement property in your exchange after your tax return due date.
If your exchange is not completed by the due date of your tax return —
FILE AN EXTENSION.
If you have any questions, please call your Exchange Counselor at
Tax Relief for Victims in Disaster Situations
Requirements for Postponement of 1031 Exchange Time Periods
Special tax law provisions may help taxpayers recover financially from the impact of a disaster such as a flood, hurricane, tornado, wildfire or certain other natural disasters or catastrophic events, particularly when the federal government declares a location to be a Presidentially-declared disaster area often referred to as a federally-declared disaster. If the IRS releases an official notice, then Section 17 of Revenue Procedure 2007-56 provides extensions of certain time deadlines in a 1031 exchange.
Interview with SVN/SFRhub Principal, Michael Finch
Watch Michael Finch with SVN/SFRhub explain how this platform provides many resources for 1031 exchange investors. Watch this 15-minute segment, here https://youtu.be/9NSML9yc8EA.
Read the SVN/SFRhub Platform Overview: https://apiexchange.com/materials/svn-sfrhub-platform-overview-v1.5-1.pdf
All SVN Offices independently owned and operated. SVN/SFRhub Advisors and Stewart are neither affiliates nor does SVN/SFRhub Advisors receive any compensation from Stewart.
911 for 1031: The 2020 Presidential Election Could be Taxing
“Let me talk to you about the 1031,” I said to a congressional staffer in Washington, D.C. This was during the early days of negotiations on the Tax Cuts and Jobs Act of 2017. The staffer looked at me and blinked. There was a pause. “Ten-thirty-one,” he repeated, somewhat confused. He looked at his wristwatch. Shook his head. “No, it is much later than that.”
The comical back and forth conversation is indicative of why we must constantly educate members of Congress and their staffs about why the Internal Revenue Code Section 1031 like-kind-exchanges, has been a part of our tax code for the past 100 years.
Existing Housing Sales Hit Best Level in August 2020 Since December 2006
Existing home sales rose to the best level seen since December 2006, coming in at 6.00 million closings on a Seasonally Adjusted Annualized Rate (SAAR) according to the National Association of Realtors® (NAR). Sales on a SAAR were up 10.5 percent compared to one year ago and up 2.4 percent sequentially vs July. Total monthly raw sales rose 5.5 percent year-over-year to 561,000 in August. Sales include single-family, condominiums and co-ops.
The median price jumped to an all-time record $310,600 versus $278,800 one year ago for — a gain of 11.4 percent. Median home prices have now gone up 102 consecutive months on a year-over-year basis. The average price rose 8.8 percent to $342,500.
Sales and median prices are shown in the following two graphs. Each show median prices, with the first using the SAAR of home sales and the second the total number of sales in the prior 12-months (raw monthly sales summed).
The 1031 exchange market nationally has been like a roller coaster this past spring and summer, plummeting down in April and roaring back up starting in June. In late March and April exchange activity [...]
Statutory Limitations on Like-Kind Exchanges The proposed regulations provide guidance implementing changes enacted in the Tax Cuts and Jobs Act (TCJA). These proposed regulations amend the existing regulations adding a definition of real property [...]
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Top 1031 Exchange Pitfalls Taxpayers should always review all aspects of any 1031 exchange with competent tax/legal advisors familiar with your specific transaction, objectives and the relevant facts. This article addresses some of the [...]