Asset Preservation's 1031 Exchange eNews | 800.282.1031|

Spring 1031 Exchange Update

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.

1031 Exchange Webinar for Real Estate Professionals

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.

1031 Exchange Webinar

1031 Exchange Webinar for CPAs

Tuesday, May 7th

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.

SC Non-Resident Real Estate Withholding & Exchanges

Watch this insightful session exploring South Carolina Non-Resident Real Estate Withholding and the intricate world of 1031 Exchanges. This on-demand webinar promises valuable insights and expert guidance to navigate these complex topics. Secure your spot now and elevate your understanding of real estate investment strategies!

IRS Form 8824 Like-Kind Exchanges

The tax filing date for many taxpayers is just around the corner. The Internal Revenue Service Form 8824, Like-Kind Exchanges, must be completed and filed with the IRS every time a taxpayer performs a 1031 exchange. The IRS Form 8824 contains three sections related to a 1031 exchange:

  • Part 1, Information on the Like-Kind Exchange;
  • Part II, Related Party Exchange Information; and
  • Part III, Realized Gain or (Loss), Recognized Gain, and Basis of Like-Kind Property Received.

Federally Declared Disaster Extension Information

Click the link below to determine if you may qualify for an extension.

Additional information here:

We Love Our Happy Customers

“I highly recommend API. I recently used them for my 1031 exchange. They were very professional and quick to answer any questions I had regarding my transaction. Their communication was great and I would not hesitate to use them again.”


– A. Maquire

25 Best Places to Buy Rental Property in 2024

When you find a market with all three factors – job growth, population growth, and affordability – you’ll likely be able to find good real estate investment opportunities for both cash flow and appreciation. To help you narrow down the best market for your real estate investment goals, Real Wealth has rounded up the top choices for 2024 and into 2025.

Overview of the Corporate Transparency Act (CTA) Reporting Requirements

As of January 1, 2024, the federal Corporate Transparency Act (CTA) has been implemented to enhance transparency and hinder illicit activities facilitated by obscure ownership structures. The CTA mandates the reporting of Beneficial Ownership Information (BOI) concerning the ultimate individual owners of entities, with reporting conducted through the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN)…


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1031 Exchange Consultation

Wishing You Happy Holidays

Happy Holidays from Asset Preservation

Message from the President

As the holiday season approaches, we wanted to take a moment to express our heartfelt gratitude for your continued patronage of API. It has been a pleasure serving you, and we are truly thankful for the trust and partnership you have extended to us throughout the year.

In the spirit of celebration, we are thrilled to share some exciting news with you. We are delighted to announce the well-deserved promotion of Donalee Ham to the position of Chief Operating Officer (COO) at API. Donalee has been an invaluable member of our team, contributing significantly to our success and growth. Her dedication, leadership, and commitment to excellence make her an ideal fit for this role, and we are confident that she will play a key role in shaping the future of API.

As we reflect on the past year, we are filled with gratitude for the milestones achieved and the positive partnerships we have built together. Your support has been instrumental in our success, and we are excited about the possibilities that lie ahead.

Looking forward to the new year, we are enthusiastic about the opportunities and challenges that 2024 will bring. With Donalee at the helm as our COO, we are confident in our ability to innovate, excel, and continue providing you with the exceptional service you deserve.

May this holiday season bring joy, peace, and prosperity to you and your loved ones. We are truly grateful for the trust you have placed in API, and we look forward to another year of collaboration and success.

Wishing you a wonderful holiday season and a fantastic start to the new year!

Javier Signature

Javier G. Vande Steeg

Do You Have a Property Closing in December?

Many investors and their advisors have real estate transactions closing near the end of December. If you or your client have an investment property transaction closing before the end of 2023 – and you have not already set up a 1031 exchange – keep in mind Asset Preservation is available to set up your exchange at the last minute! We can often set up a new 1031 exchange, converting an otherwise taxable sale into a tax-deferred transaction, within an hour. A properly structured exchange provides an investor with up to 45 calendar days to potentially find suitable replacement property. For more information, please call us at 800-282-1031 or via email at

1031 Exchange Webinar

1031 Exchange Webinar

Thursday, January 4th

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.

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

Goldman Sachs expects the frozen housing market to thaw just slightly over the next four years, according to an outlook from a team of strategists led by chief economist Jan Hatzius. For 2023, the bank’s preliminary estimate for housing starts sits at 1.390 million.

Federally Declared Disaster Extension Information

Click the link below to determine if you may qualify for an extension.

Additional information here:

1031 exchange basics

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.

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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