State Tax Withholding: Summary of the Extensions & Rules
Some states impose a mandatory tax withholding requirement on the sale of real property by nonresident individuals or entities. In some cases, an exemption is available for investors performing 1031 exchanges. This is a brief summary of some state withholding requirements… Read More
Webinars: Jan 24th & Feb 19th
Join one of our one-hour 1031 exchange webinars for tax and legal advisors (CPE credit available). These webinars tackle 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.
No, Opportunity Zone Investments Will Not Replace Section 1031 Exchanges
By: Matthew E. Rappaport, Esq., LL.M.
As everybody probably knows by now, I’ve been part of the enthusiastic chorus of advisors singing the praises of the Opportunity Zone Program. Make no mistake: the program is a game-changer for private equity and the real estate industry. We’ve already seen the widespread impact across the country in many markets where Opportunity Zones are located.
But some of the hype has led commentators to declare the end of the Section 1031 exchange. As the Opportunity Zone program takes shape, and as I conduct in-depth conversations with clients and advisors about taking advantage of the tax incentives, the way taxpayers will approach the program has become increasingly clear. Read More
New Location, Same Excellent Customer Service
Asset Preservation’s National Headquarters has moved into a much larger office space to help accommodate additional exchange counselors and other support staff and maintain Asset Preservation’s commitment to exceptional service nationwide. The new address for the National Headquarters is 1420 Rocky Ridge Drive, Suite 380, Roseville, CA 95661.
All phone numbers and other information is the same.
The retail asset class has experienced its own odd polarity. On one hand, retail is struggling to survive in a world dominated by ecommerce, and on the other, it is thriving in well-located markets with high-quality product. Last year, 1031 exchange buyers, in particular, leaned into retail as a low-management investment class, and many of these buyers exchanged out of multifamily. Newmark Knight Frank recently sold a four-property retail portfolio for $35 million, focusing specifically on exchange buyers for the deal. Read More
The Best and Worst Towns to Buy a Home
Buying your first home shows you’ve achieved a level of financial success and maturity to take on the responsibilities of homeownership. But taking that step is easier in some cities than it is in others.
GOBankingRates looked at a variety of economic data to determine which cities are the best and worst for first-time homebuyers. The rankings include factors like foreclosure rates, share of homebuyers with non-prime credit and the percentage of FHA-insured loans — which over one-third of first-time buyers choose because of low down payment requirements. Read More
Improving Relinquished Property Before a Sale
It is common for a taxpayer to make repairs, updates, and improvements to enhance a relinquished property in preparation for listing with a real estate agent or broker. A commonly asked question is, “Can I be reimbursed from the 1031 exchange for the costs associated with improving or repairing the property immediately before the sale?” The answer is no, not without generating a tax consequence. The reason for this is that any exchange proceeds a taxpayer receives from a 1031 exchange are considered “boot” and are generally taxable to the extent the taxpayer has a capital gain tax consequence. Read More
