No Intent To Hold For Investment

A recent Tax Court Case, Yates v. Commissioner, T. C. Memo 2013-28, is an example of an intended 1031 exchange which was determined to be invalid because the taxpayer did not hold the replacement property for investment or business purpose. The taxpayer acquired a replacement property, and then moved into the replacement property only 4 days after the property was acquired. The court noted that using a property as a residence created a clear presumption of non-business intent.

As a result of failing to qualify for tax deferral under Section 1031, the taxpayer was determined to owe capital gain taxes, plus an additional accuracy-related penalty under Section 6662(a) for substantial underpayment and disregard of rules and regulations. Read More…

1031 Basics: 1031 Exchange Contract Language

Although many exchangers include language in their Purchase and Sale Agreements establishing their intent to perform an exchange, it is not required by Section 1031. It is important, however, that the Purchase and Sale Agreements for both the relinquished and replacement property are assignable.

Click here to learn more about 1031 Exchange Contract Language.

Home Prices Gain In Best Showing Since 2006

Average home prices increased 9.3% year-over-year for S&P/Case-Shiller’s 20-City Composite Index, while the 10-City Composite increased 8.6% in the same time frame. It marked the best showing for the S&P/Case-Shiller Home Price Indices since before the housing bubble burst.

For the full article on Home Prices Gain In Best Showing Since 2006, Read More…

Call Us

Asset Preservation would appreciate the opportunity to work with you on your next exchange regardless of how simple or complex. Give us a call at 800-282-1031 to open a 1031 exchange file. Or to open a 1031 exchange file online, email us at info@apiexchange.com.

API is committed to providing its exchange customers with unmatched service, and the highest level of security available in the 1031 exchange industry. From the customer’s first contact with an API representative, API’s professional exchange counselors, attorneys and accountants work together to meet the customer’s service needs in order to ensure a smooth transaction with no surprises. In the background, API’s management maintains tight financial controls and multi-layered security systems necessary to provide a level of comfort and performance quality relied on by sophisticated investors and corporate America; we call it the “The API Advantage™.”

The 2013 Best Cities For Job Growth

Real estate appreciation often comes with job growth. Click here to view rankings of the best cities for job growth based on short-, medium-, and long-term employment, and whether job growth momentum is slowing or increasing.

Click on this link to view The 2013 Best Cities For Job Growth.

Home Appreciation Projected To Exceed 5% Through 2013

In the Zillow Home Price Expectation Survey, 105 economists, real estate experts and market and investment researchers provided predictions for housing market growth in the near term. The average prediction for appreciation in 2013 is 5.4 percent.

Click on this link to see the survey, Home Value Appreciation To Exceed 5 Percent Through 2013.