Asset Preservation's 1031 Exchange eNews | 800.282.1031|info@apiexchange.com

Happy 1031 Day!

1031 exchanges aren't scary

If your 1031 exchange is not complete by the due date for your tax return, you may need to file for an extension.

The time frame you have to complete the acquisition of your replacement property ends at midnight on the earlier of: (a) the 180th day after the date you transferred the relinquished property; OR (b) 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 your relinquished property sale closes after October 17, 2024, your 180th day deadline to acquire replacement property will fall after the common 2024 tax return due date of April 15, 2025. In order to receive the full 180-day period to acquire replacement property, you must file an application for extension of time with the IRS to extend the due date for your 2024 tax return. 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. Taxpayers may have different tax return due dates. Please consult with your tax advisor to determine your tax return due date, and whether you will need to file for an extension.

If you have any questions, please contact your tax advisor.

National Headquarters: 800.282.1031
Eastern Regional Office: 866.394.1031



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.

webinar

1031 Exchange Webinar

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.



Asset Preservation is back as a sponsor and speaking at the  Tax & Legal 360 event this December.  Don’t miss out on this incredible opportunity to gain insights from industry leaders. 

Where: Scott Resort & Spa-Phoenix, AZ🌵
When: December 4th – 7th 🗓️
Why: Because it’s the hottest event at the coolest time of the year! ☀️

Use discount code dec24asset10 to receive 10% off your tickets.

Tax and lLgal 360 Event

trick

From the closing on the sale of the relinquished property, an exchanger must: (1) properly identify potential replacement properties within 45 calendar days (the “Identification Period”) and; (2) close on the replacement property(ies) within 180 calendar days of the transfer of relinquished property sale (the “Exchange Period”). To access a calculator and determine your 45-day Identification Period and 180-day Exchange Period.


💀We Love Our Customers to Death💀


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/



Understanding capital gains tax rates is essential for real estate investors. The U.S. tax code has evolved significantly over the years, impacting how capital gains on investments are taxed is generally based on (1) the time an investment is held and (2) the investor’s specific tax bracket. From beginning early in the 20th century until the recent Tax Cuts and Jobs Act of 2017 (TCJA), this article delves into how tax rates on capital gains have changed over time and what that means for you as an investor.

Explore the full article and gain insights that could help you navigate your investment strategy with confidence!


Call for a free 1031 consultation

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.



Buying a newly built home in the US now costs nearly the same as buying an existing home, another head-scratching reality of today’s housing market. The median new home sold for $420,600 in August, scarcely 1 percentage point more than the median existing home’s sale price of $416,700 during the same period. Measured on a 12-month rolling average, the premium for buying new is the lowest it’s been since the 1980s.



History of Capital Gain Tax Rates

Understanding capital gains tax rates is essential for real estate investors. The U.S. tax code has evolved significantly over the years, impacting how capital gains on investments are taxed is generally based on (1) the time an investment is held and (2) the investor’s specific tax bracket. From beginning early in the 20th century until the recent Tax Cuts and Jobs Act of 2017 (TCJA), this article delves into how tax rates on capital gains have changed over time and what that means for you as an investor.

Explore the full article and gain insights that could help you navigate your investment strategy with confidence!

Customize this 1031 exchange article

Friday, September 27th

webinar

1:00 PM – 3:00 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, October 8th

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.

1031 Exchange Webinar


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/


⭐⭐⭐⭐⭐


Top Markets for Investors

The top investor markets each offer investors a unique combination of advantages. But in general, these are affordable markets that see considerable buyer demand and low rental vacancy.


Real Estate Investors’ Summit at Sea

Set sail to success at the Real Estate Investors’ Summit at Sea — Join a 7-day cruise with real estate workshops, networking, and VIP parties. Depart Miami, Florida for Cozumel, Honduras, and Costa Maya.

Dates: February 16-23, 2025
RSVP:  Rooms are selling out fast. RSVP soon.

Discount code: API450 for $450 off.


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.

Wishing You a Very Happy Thanksgiving

1031 Exchange News

As Thanksgiving approaches, we take this opportunity to reflect on the things we are most grateful for – and you, our valued customers, are at the top of that list. Your trust in us as your 1031 exchange partner inspires us to deliver exceptional service and expertise every day.

This season, we wish you and your loved ones a holiday filled with gratitude, joy, and abundance. May your homes be warmed by laughter, your tables adorned with delicious meals, and your hearts brimming with cherished memories.

Thank you for allowing us to be a part of your journey. We look forward to continuing to support your success in the year ahead.

From all of us at Asset Preservation, we wish you a very Happy Thanksgiving!


2024 Year-End Tax Planning

Exchanges Over Two Tax Years May Be Treated As An Installment Sale

In a delayed exchange transaction structured to satisfy the requirements of §1031, an exchanger has up to 180 calendar days to acquire like-kind replacement property measured from the day the relinquished property is sold. Once initiated, the delayed exchange may be successfully completed (resulting in complete tax deferral), partially completed (resulting in recognition of some capital gain) or it may fail if no like-kind replacement property is acquired (resulting in the recognition of all capital gain generated by the sale). If the exchange begins in one tax year and extends into the subsequent tax year, the question arises whether the gain realized on the sale is recognized in the year in which the relinquished property was sold or in the subsequent year in which the exchanger received the cash sale proceeds from the qualified intermediary.

In a perfect world, gain would be recognized in the subsequent year when the proceeds were actually received by the exchanger. In many cases, this turns out to be wholly or partially true.


-Andy A.


Friday, December 6th
1:00 PM – 3:00 PM CT
CE / CPE 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.

webinar

Tuesday, December 10th
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.


API’s Thanksgiving cocktail recipe is a delicious, festive one–perfect for sharing with loved ones. Enjoy!

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/


Important Information for Investors Beginning an Exchange

If your 1031 exchange is not complete by the due date for your tax return, you may need to file for an extension.

The time frame you have to complete the acquisition of your replacement property ends at midnight on the earlier of: (a) the 180th day after the date you transferred the relinquished property; OR (b) 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 your relinquished property sale closes after October 17, 2024, your 180th day deadline to acquire replacement property will fall after the common 2024 tax return due date of April 15, 2025. In order to receive the full 180-day period to acquire replacement property, you must file an application for extension of time with the IRS to extend the due date for your 2024 tax return. 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. Taxpayers may have different tax return due dates. Please consult with your tax advisor to determine your tax return due date, and whether you will need to file for an extension.

If you have any questions, please contact your tax advisor.

National Headquarters: 800-282-1031
Eastern Regional Office: 866-394-1031


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.

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