10 Reasons to Exchange & Never Pay Capital Gain Taxes Again
Exciting news! 1031 exchange activity is on the rise, and investors nationwide are opting to defer capital gain taxes. But there’s more to it than just tax deferral. Discover why exchanging is a strategic move with our new handbook: “10 Reasons to Exchange and Never Pay Capital Gain Taxes Again.”
Dive into the benefits and supercharge your investments while keeping more money in your pocket. Click the link below to read or download now!
Join Us at the Tax & Legal 360 Conference on June 5 – 8th
Asset Preservation’s Senior Vice President, Scott Saunders, will present at Tax & Legal 360 Conference.
You’ve never experienced a Tax & Legal conference like this! Register now and use the code ASSET10 at checkout to receive a 10% discount on all ticket options except VIP.
National leader, speaker, author, and influencer, Mark Kohler brings together his most impactful tax and legal topics for an event like no other!! A true conference where business owners and Tax and Legal professionals network all under one roof!
1031 Exchange Webinars
Friday, June 21st
12:00 PM – 2:00 PM CT
CE Available
This two-hour course for commercial brokers provides a concise and thorough overview of 1031 exchanges. This webinar tackles advanced issues such as partnership/LLC scenarios, creative property variations such as perpetual cellular easements (cell towers), fractional ownership, transferable development rights, reverse and improvement exchanges, how to avoid common pitfalls and related-party transactions.
Tuesday, July 2nd
10:00 AM – 11:00 AM CT
CPE Available
This one-hour intermediate/advanced webinar covers critical time deadlines, like-kind requirements, fractional ownership, oil/gas/mineral rights, related party transactions, partnership/LLC scenarios, reverse and improvement exchanges, and how to avoid common pitfalls.
Federally Declared Disaster Extension Information
Click the link below to determine if you may qualify for an extension.
https://www.irs.gov/newsroom/tax-relief-in-disaster-situations
Additional information here: https://apiexchange.com/disaster-relief/
Podcast: New Episode Alert
In this episode of the Teaching Tax Flow podcast, Chris Picciurro & John Tripolsky delve deep into the complexities of 1031 exchanges, a crucial topic for anyone aiming to maximize their real estate investments.
Asset Preservation’s Senior Vice President, Scott R. Saunders, joins the podcast to break down the rules and nuances of 1031 exchanges. From understanding the identification process to replacement property guidelines, this episode is packed with practical insights for investors at all stages.
Key Takeaways:
Tax Deferral: Swap one investment property for another without the proceeds touching your bank account.
Critical Rules: Ensure the exchange is set up before the property closure and avoid receiving cash from the sale.
Time Constraints: 45 days to identify and 180 days to complete the exchange.
Like-Kind Properties: Broadly defined, offering flexibility in investment property types.
Partially Deferred Exchanges: Introduce outside cash to balance a decrease in mortgage value.
Is a Partial Exchange Right for You?
A prevailing misconception is that a taxpayer considering a 1031 exchange should always seek to obtain full tax deferral. However, in reality, approximately one-third of taxpayers opt for a partially-deferred 1031 exchange. (Ling & Petrova, The Tax and Economic Impacts of Section 1031 Like-Kind Exchanges in Real Estate (2020) (submitted to the Real Estate Research Consortium), page 12).
Rather than reinvesting the entire net proceeds and acquiring property with an equivalent or higher total amount of debt, some taxpayers opt to reinvest into a replacement property and receive boot. This approach offers numerous benefits, including partial tax deferral and the redeployment of proceeds into another property, thereby enhancing return on investment. The boot portion of the transaction may consist of cash boot (actual cash proceeds received by the taxpayer) or mortgage boot (a reduction in mortgage liabilities on the replacement property compared to the mortgage liabilities on the relinquished property). Typically, cash boot and mortgage boot are taxable, although in certain circumstances boot may not be nontaxable, depending on the taxpayer’s unique facts and circumstances. For instance, a taxpayer may have suspended carryforward losses that could be used to offset some or all of the otherwise taxable boot.
We Love Our Happy Customers
“This was our first time doing a 1031 exchange, and they made the process painless. They were friendly, courteous, attentive, professional, and helpful. Any questions we had were quickly answered. I would use their services again if we do any future exchanges. Highly recommended!”
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– A Y
Case-Shiller Index: Home Price Gains Hit All-Time High
Amid an environment of tight inventory and stubbornly high mortgage rates, housing prices in the U.S. are on the rise — again. S&P CoreLogic’s latest Case-Shiller U.S. National Home Price NSA Index, released May 28, 2024, reports that annual home-price growth increased in March 2024 by 6.5 percent. That’s relatively flat from the previous month, representing the sixth all-time high in the past 12 months.
Call Us
Asset Preservation would appreciate the opportunity to work with you
on your next 1031 exchange. Give us a call for a free consultation.