1031 exchange:
Exchanges Require Specialized Knowledge
Add YOUR Info to Newsletter  |
A realtor called us with a technical exchange question. He was in a hurry, as the relinquished property was closing that very day. The question was: Can an exchanger carry back a note and deed of trust and also perform a 1031 exchange on the same relinquished property?
Despite answering the realtor's question, we did not act as Qualified Intermediary for that exchange. As it turned out, a title company was handling the exchange, but being unable to answer the question, they referred the realtor to us for technical advice.
Answer: We discourage exchangers from combining owner carry financing with 1031 exchanges. This combination complicates exchanges, however, the Internal Revenue Code specifically allows both an exchange and installment note treatment in the same transaction.
The moral of the story is: "When seeking specialized knowledge, ask a specialist."
Latest News
One Spouse or Two How to handle how spouses hold property ...Read More
Extend 1031 Exchange Deadlines A strategy for extending your deadlines ...Read More
RELATED PARTY 1031 EXCHANGES FULL OF SUBTLETIES You need to understand this if you are thinking of ...Read More
Online help for completing IRS Form 8824 Now available--online system for completing your F ...Read More
Three Tax Strategies to Maximize Tax Savings Good strategies to keep in mind or pass on to your ...Read More
Toll Free: 1-888-899-1031
Latest Newsletters
Oil and Gas investors are exchanging into undervalued real estate... Read More
Freeing up cash before closing is often invaluable... Read More
Don't lose out on the opportunity to save thousands of dollars in taxes... Read More
Top 10 Ways to Legally Avoid Paying Taxes.
Sometimes our lamentable sense of humor gets the better of us... Read More
1031 Exchange Alternative: Oil and Gas Investments.
Certainly the most common exchange we facilitate is real estate for real estate. Did you know the definition of "real property" includes mineral/oil and gas rights? Read More
Category
- Cash from exchange!
- My state tax rate
- Tax Estimator
- 1031 Exchange Summary
- 1031 History
- FORM 8824 Help
- Client FAQs
- Newsletters
- Exchange Types
- Exchange Fees
- About Us
- Affiliate Program
- Join Our Network
- Newsletter Sign-up
- Contact Us
- Newest Pages
- Dual Use of Property
- Three Tax Strategies to Maximize Tax Savings
- Online help for completing IRS Form 8824
- Principal Residence Considerations
- Lease Options
- Accumulated Depreciation
- Taking Cash Out of a 1031 exchange
- More on Capital Gains
- Capital Gains Exclusion???
- Exchange Basics
- Increasing Basis
- Tax Free Cash
- Subdividing question
- 200 Percent Identification Rule
- How Often can I take Advantage of the Tax Exclusion Under IRC section 121?
- Capital Gains State Tax Rates
- RELATED PARTY 1031 EXCHANGES FULL OF SUBTLETIES
- Extend 1031 Exchange Deadlines
- One Spouse or Two
- Capital Gains Tax Example
- FunTaxGear.com
- Site Map