Relief for Victims of Hurricane Irma
- The IRS is providing a variety of tax relief for those affected by Hurricane Irma. For the latest updates, check the Hurricane Irma page.
Relief for Victims of Hurricane Harvey
- The IRS is providing a variety of tax relief for those affected by Hurricane Harvey. Check the Hurricane Harvey page for the latest updates.
Requirements for Postponement of 1031 Exchange Time Periods
Taxpayers affected by the recent hurricanes may be eligible for an extension in their 1031 exchange time period deadlines under Revenue Procedure 2007-56. Section 17 of Revenue Procedure 2007-56 provides postponement provisions specific to 1031 exchange deadlines that apply in the case of Presidentially-declared disasters. This section extends the 45 and 180-day periods in forward and reverse exchanges that fall on or after the date of a Presidentially-declared disaster by the later of 120 days or the date specified in the relevant IRS News Release. Read More
Hurricanes, Housing and the Economy
For those who live near the East or Gulf Coasts in the U.S. long enough, a hurricane or tropical depression will likely enter your life at some stage. Since I moved to Houston in 1997, the city has experienced three major storms in the Gulf of Mexico: Tropical Depression Allison, Hurricane Ike, and the now-infamous… Read the White Paper
Webinars: 1031 Exchange Issues in 2017
Join our one-hour 1031 exchange webinar for tax and legal advisors (CPE credit available) on Thursday, October 5th at 11:00 a.m. EST. This webinar tackles issues such as reverse and improvement exchanges, related party issues and how to avoid common pitfalls. You will receive a summary of current developments regarding possible tax reform and the implications on 1031 exchanges. Webinar Details. Register Now
Mr. President, Please Don’t Take Away Our 1031s!
As hard as it is to believe, summer is over, and we are now chugging toward the holidays and the end of the year. With this comes the very important public policy discussion that will take place around tax reform. Tax reform could be extremely good for commercial real estate or could be devastating.
The three components of tax reform that could profoundly impact commercial real estate capital markets are expensing, or being able to depreciate 100 percent of a capital investment in the year it is made; the elimination of the deductibility of interest on business debt (all businesses, but particularly commercial real estate, rely on debt); and modifications to 1031 tax-deferred exchanges. Read More
Asset Preservation would appreciate the opportunity to work with you on your next exchange regardless of how simple or complex. Give us a call at 800-282-1031 with any 1031 related questions or Open a 1031 Exchange Online.
API is committed to providing its exchange customers with unmatched service, and the highest level of security available in the 1031 exchange industry. From the customer’s first contact with an API representative, API’s professional exchange counselors, attorneys and accountants work together to meet the customer’s service needs in order to ensure a smooth transaction with no surprises. In the background, API’s management maintains tight financial controls and multi-layered security systems necessary to provide a level of comfort and performance quality relied on by sophisticated investors and corporate America; we call it the “The API Advantage™.”
In Case You Missed It
Here is a brief update regarding 1031 exchange activity:
- 1031 Exchanges are up Significantly: The increase in prices and rents for both commercial and residential investors has led to a huge increase in 1031 exchange activity with many more investors choosing to set up a 1031 exchange prior to closing to obtain tax deferral. By all indications, 1031 activity is up 15-20% more from last year.
- The 3.8% Net Investment Tax Remains in the Tax Code: The failure of Congress to agree on healthcare reform means that the 3.8% net investment income tax (NIIT) that affects many investors in higher tax brackets remains. This added tax is another factor driving the surge in 1031 exchange activity.
- 1031 Exchanges Continue to be at Risk with Tax Reform: Congress continues to look at repealing or limiting 1031 exchanges as a “pay-for” to accomplish tax reform. Visit 1031taxreform.com for the latest updates and to share your concern about how eliminating exchanges could negatively affect investors and the real estate market.
- Reverse Exchanges up Considerably: In many markets, the lack of inventory creates a problem for investors facing the 45/180 day time deadlines. As investors find off-market and other desirable replacement properties that need to close quickly, they are turning in increasing numbers to reverse exchanges where they can close on the purchase before closing on the sale of their investment property.
As housing prices continue to climb, it’s no surprise the homeownership rate is dwindling. In fact, the U.S. rate of homeownership is nearing its lowest point since 1965, with just 63 percent of the population owning their own home… Read More
Detroit Real Estate Heats Up
One of the largest decisions anyone makes is whether to purchase or rent a home. The answer is not always straight forward. Many factors are required to reach a financial solution: home price, rent, income tax rate, interest rate, property tax, duration of rent or ownership, other tax deductions that can be itemized, insurance, homeowner or condominium association costs and maintenance fees. Even then the bold assumption must be made regarding the availability and alternative investment opportunities of the down payment.
Good news is that GoBankingRates, for the second year in a row, has condensed this decision to just a few variables and completed all of the calculations allowing a quick economic decision. They utilized estimated typical rents by state as per Zillow – including single and non-single family properties. The methodology was simple and straight forward: compare rents from homes on the Zillow site to the monthly mortgage payment based on the median list price of homes assuming a 20 percent down loan using a 30-year fixed-rate loan. Read More
10 Cities Where People Made Returns of 50% or More Selling Their Homes
Some Americans who bought their home between seven and nine years ago have made up to $235,000 over that time selling their home, or $34,000 per year, making a final return on their investment of 78%. That’s the median amount of money home sellers made after 7 years, 3 months in Oakland, Calif., an analysis of sale prices by real-estate site Zillow found. In Portland, Maine, sellers last year sold for $145,000 more than what they paid 9 years earlier, a 65% gain… Read More