Partnerships and 1031 Exchanges
Available Options for Partners and Partnerships (and LLCs)
Like any taxpayer, a partnership (and a limited liability company taxed as a partnership, generally referred to herein as a âpartnershipâ) can engage in a like-kind exchange under IRC Section 1031 to defer paying tax on capital gains. Difficulties can arise, however, when the individual partners desire different outcomes with regard to the sale of property by the partnership. Some partners may wish for the partnership to stay together and do an exchange; others may want to do their own exchange with their portion of the property; still others may wish to receive cash and simply pay the tax. What alternatives are available to the partners?
New Podcast: 1031 Exchange Strategies and Calculation
Facilitated by Todd A. Kuhlmann, CCIM with special guest speaker – Scott R. Saunders, Senior VP of Asset Preservation, Inc.
Maximize your investment return and retain more of your cash! In this 1-hour web session, we will discuss the impact of Capital Gains Taxes, the Health Care Tax – Net Investment Income Tax (NIIT), and how to use TheAnalystÂź PRO to instantly calculate how much you can defer through a 1031 exchange.
1031 Basics: Reverse Exchange Comparisons
Sometimes a taxpayer may want to perform a parking arrangement called a reverse exchange in which the replacement property is purchased before closing on the sale of the relinquished property. There are many reasons why a taxpayer may need the benefits of a reverse exchange, including being in a sellerâs market where recently listed properties are quickly under contract with a buyer or where there is little inventory. Revenue Procedure 2000-37 provides guidelines and safe harbor treatment for a taxpayer to perform a parking arrangement exchange within 180-calendar days from the Exchange Accommodation Titleholderâs (EAT) purchase of the replacement property.
1031 Exchange Webinars
Monday, December 19th
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.
Thursday, December 1st
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, and how to avoid common pitfalls and related-party transactions.
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/
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
Appreciation and 1031 Exchange Uptick in Vacation Destinations
The COVID-19 pandemic changed how many people work, with many more working at home or a hybrid of an at-home split with time in an office setting. This has led to a significant increase in the value of vacation home/2nd home markets as many taxpayers have contemplated relocating to a more desirable area that isnât necessarily tied to where a physical office is located. The increase in values has resulted in many taxpayers considering a 1031 exchange and/or positioning their property as a rental property so it may qualify for a 1031 exchange in the future.
Free 1031 Exchange Calculator
Register for a lite version of TheAnalyst PRO at no charge (no credit card required): https://theanalystpro.com/1031/
Discounted upgrade plans are available to unlock all of the tools within CRE Techâs #1 Analysis and Marketing Platform. TheAnalyst PRO includes Financial and Lease Analysis, Location Risk Analysis, Demographics, Infographics, Offering Memorandums, Flyers, and Brochures.
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