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

Autumn 1031 Exchange Update

1031 exchange news

As we approach Thanksgiving Day, we want to extend our warmest wishes to you and your loved ones. May your homes be filled with laughter, your hearts with joy, and your tables with the bountiful blessings of this season. We are thankful for the relationships we’ve built with each of you and look forward to continuing to serve you with the highest level of professionalism and expertise.

Thank you for choosing Asset Preservation, Inc. as your partner in 1031 exchanges. Wishing you a Thanksgiving filled with warmth, happiness, and cherished moments with family and friends.

Happy Thanksgiving!


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.


Don’t miss The Ultimate Tax & Legal Conference with Asset Preservation’s Scott Saunders for 3 days of cutting-edge 1031 exchange tips and other tax strategies. Mention “SCOTT15” for 15% off.


Important Information for Investors Beginning an Exchange

From October 17 – December 31, 2023

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 the 180th day after the date you transferred the relinquished property OR 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, that if the 180th day following the closing of your first relinquished property falls after the due date for your 2023 tax return (for example, for many individuals, April 15, 2024) you must file an application for an extension of time with the IRS to extend the due date in order to have all 180 days to acquire the replacement property. 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.

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

If you have any questions, please call your Exchange Counselor at
National Headquarters: 800.282.1031

Eastern Regional Office: 866.394.1031


We Love Our Happy Customers

This is the second time I have used Asset Preservation within a year to facilitate a 1031 exchange. I recommend this group without reservation. They communicated clearly and efficiently to keep me apprised of all the steps.
Could not be happier!

– Silvija A., Massachusetts


1031 Exchange Webinars

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.

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/


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.

Happy 1031 Day!

happy 1031 day

🍬What is the 1031 Exchange Timeline?🍬

Navigating the complexities of a 1031 exchange can be overwhelming, especially when it comes to understanding the timelines involved. At Asset Preservation, Inc. (API), we provide unmatched service and comprehensive knowledge regarding the 1031 exchange timeline and applicable rules.

We have created a guide that will break down the 1031 exchange timeline, helping you understand each crucial phase of the 1031 exchange process. Our goal is to simplify these intricate timelines for you, offering a smooth, secure transaction with no surprises!


Important Information for Investors Beginning an Exchange

From October 17 – December 31, 2023

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 the 180th day after the date you transferred the relinquished property OR 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, that if the 180th day following the closing of your first relinquished property falls after the due date for your 2023 tax return (for example, for many individuals, April 15, 2024) you must file an application for an extension of time with the IRS to extend the due date in order to have all 180 days to acquire the replacement property. 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.

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

If you have any questions, please call your Exchange Counselor at
National Headquarters: 800.282.1031

Eastern Regional Office: 866.394.1031


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🎃1031 Exchange Webinars with CE/CPE🎃

Friday, December 15th

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.

Monday, November 13th

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.



🔮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.


💀We Love Our Happy Customers to Death!💀

Job well done!! It was a pleasure working with you on the 1031 Exchange. You made it so easy and effortless. Thank you again for taking care of my clients and making it all come together. I appreciate it. I look forward to the next one.

– Peter, Colorado


🕸️1031 Tools: 45/180 Day Calculator🕸️

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.


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/


Call for a free 1031 consultation


🔥New Home Sales Ignite as Existing Home Sales Sputter🔥

New home sales were up an impressive 31.5 percent in July 2023 vs 1-year ago and up 4.4 percent sequentially from June this year on a seasonally adjusted annualized rate (SAAR) according to the U.S. Census Bureau. In comparison, existing home sales were down 16.6 percent year-over and off 2.2 percent sequentially from the prior month as reported by the National Association of Realtors® (NAR). New home sales median price was down 8.7 percent in July year-over-year to $436,700 while existing home sales price at $406,700 was up 1.9 percent in the same period.


1031 Exchange News Update

1031 exchanges and commercial real estate basics

In this fast-paced webinar, we will address 1031 tax-deferred exchange issues in the Commercial Market including:

  • Partnerships and 1031 Exchanges: Handling LLC/Partnership Sales when some partners want to sell for cash and others want to exchange.
  • Related Party Exchange Issues: Four (4) different scenarios for handling transactions involving related parties.
  • Exchange Entities: Same “tax owner” requirement.
  • Using reverse exchanges to acquire off-market CRE deals in 2023.
  • Build-to-Suit exchanges including Leasehold Improvement Exchange structures.
  • Requirements for full deferral and partial commercial exchanges
  • Delayed exchange time deadlines and how to properly identify replacement property.
  • Creative qualifying “like-kind” property including: Air rights (transferable development rights), easements (cell towers), oil/gas/mineral rights, Tenant-in-Common/Delaware Statutory Trust (DST) fractional ownership.

Don’t Miss Out: You May Qualify for a Disaster Extension

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/


1031 Exchange Webinars

Monday, August 28th

10:00 AM – 11:00 AM CT
CPE Credit Available

This one-hour intermediate/advanced webinar provides a concise and thorough overview of 1031 exchanges for accountants, CPAs, and tax advisors. This 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.

Friday, September 8th

12:00 PM – 2:00 PM CT
CLE/CPE Available

This two-hour course for commercial brokers provides a concise and thorough overview of IRC Section 1031 tax-deferred 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.


Ken McElroy Podcast: Talking Tax Tactics

Enjoy this brief clip from Ken’s Happy Hour with API’s Scott Saunders. Ken and Scott take a deep dive into 1031 exchanges and how to use it to your advantage if you’re a real estate investor.


Record High Home Prices Mean You May Have Cash Hidden In Your Home

Home prices are on a tear again across much of the nation after falling for much of last year. That means giving back to homeowners the equity they lost.


We Love Our Happy Customers

Great experience! We knew nothing about the 1031 process,
and API guided us each step of the way. They were also very responsive and took the time to explain everything!
– Mike B., Texas


Join us on LinkedIn

Follow API on LinkedIn for lots of exciting 1031-related updates and news.


1031 QUESTIONS?

Give us a call for a free consultation.


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