1031 Exchange & Primary Residence

The tax code provides a number of provisions that provide benefits to taxpayers who own real property. IRC Section 1031 allows for tax deferral on the sale of a property used in a trade or business or held for investment when exchanged for like-kind replacement property to be used in a trade or business or held for investment. Section 1031 only provides for tax deferral as the original basis is carried over into the replacement property and capital gain taxes are owed when the replacement property is later sold and cash is received. Section 121 allows for tax exclusion on the sale of a principal residence when the taxpayer lives in the property as their residence for two out of the past five years. Taxpayers meeting these requirements can exclude up to $250,000 of gain if filing as a single taxpayer and $500,000 of gain if married and filing jointly. Section 121 provides for tax exclusion up to these $250,000/$500,000 threshold amounts while §1031 provides only tax deferral but with no limit on the amount of deferral. Read More

1031 Basics: 1031 Exchange Terminology

To many taxpayers the terminology used to describe aspects of IRC Section 1031 exchanges can be a bit foreign. Go to the link to view brief definitions of terms commonly used in the environment of 1031 exchanges. Read More

Webinars: 1031 Exchange Issues in 2017

Potential end of 1031 exchange provision could impact hotel transactions

A popular commercial real estate tax break used by hotel companies such as Hilton could be going away soon, even if a federal tax overhaul isn’t passed this year. Read More

Best (and Worst Worst) Markets for Potential Savings

While some markets pay more than others, the higher pay may be more than consumed by a greater cost of living. Once again I invoke the TINSTAANREM axiom — There Is No Such Thing As A National Real Estate Market. Nor is there such a thing as typical income and cost of living. Read More

Tax Reform is a Noble Goal—But Hands Off 1031 Exchanges

Real estate investors face enormous up-front costs. Without the ability to exchange assets and defer capital gains taxes, many owners will, sadly, allow properties to fall into disrepair. Read More

Call Us

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. 

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Most (and Least) Affordable U.S. Beach Towns 2017

Most people cannot afford a home in a beach town – correct? Not so according to Realtor.com and some of their latest research. Surprising was the number of diverse locations across the U.S. in which the words Affordability and Beach Town could be combined in the same sentence without using the word NOT. Read More

Related Party Exchanges–Malulani

Section 1031(f) restricts tax-deferred exchange treatment in the situations where there is a 1031 exchange between related parties. Moreover, Section 1031(f)(4) states that non-recognition treatments does not apply to any exchange which is part of a transaction or series of transactions structured to avoid the purposes of Section 1031(f). Read More