Pennsylvania to Recognize 1031 Exchange Tax Deferral Beginning January 1, 2023

The state of Pennsylvania has been the only state where the personal income tax provision regarding Section 1031 did not conform to the federal Internal Revenue Code Section 1031. In the past, this meant taxpayers could defer capital gain taxes at the federal level but not on Pennsylvania state income taxes. On July 11, 2022, Governor Tom Wolf signed HB 1342. Beginning January 1, 2023, Pennsylvania state treatment of 1031 exchange will conform to the federal internal revenue code, and taxpayers who complete 1031 exchanges be eligible for 1031 exchange tax deferral of both federal and state taxes.


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.


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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/


Step Transaction Doctrine

The step transaction doctrine is a common law principle and is part of the general tax concept that substance should control over the form. In using this doctrine, a series of separate transactions is recharacterized as a single transaction for tax purposes. The doctrine is applied to prevent tax abuse; and is often used in combination with other doctrines such as the business purpose doctrine (Gregory v. Helvering, 293 U.S. 465 (1935)). The step transaction doctrine applies in cases when a taxpayer wants to…


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Asset Preservation would appreciate the opportunity to work with you on your next 1031 exchange. Give us a call for a free consultation.


Get Real Podcast: Ways To Defer Taxes and Get Better Returns

Scott Saunders, Sr. Vice President of Asset Preservation, joins the Get Real (Estate) podcast to discuss the best ways to tailor your 1031 exchanges and how you should be handling them.