The Top 10 Reasons to Do a 1031 Exchange

Posted by Tom Gustafson on Wed, Apr 04, 2018


Every taxpayer’s situation is unique and therefore every 1031 exchange is individually nuanced. Despite the innate differences in every potential exchange, a pattern has emerged as to the most common reasons that an individual will move forward and utilize a 1031 exchange. Below are the top ten reasons we’ve found that have motivated taxpayers to move forward.

Read More

Tags: Starker 1031, 1031 Exchange Rules California, 1031 exchanges, 1031 exchange, defer capital gains tax

A Beginner's Guide to a 1031 Exchange

Posted by Andy Gustafson on Mon, Jul 30, 2012

The benefits of a 1031 exchange have been well-documented by CPAs and financial advisors as a wealth building strategy for individuals, trusts, partnerships and corporations -- both United States residents and non-resident foreigners. The core of the strategy is the deferred federal, state and recaptured depreciation taxes, enabling the taxpayer to cash in on, an indefinite interest free loan given like-kind replacement property of equal or greater value is acquired and strict 1031 exchange rules are followed.

Read More

Tags: tax deferred exchanges, defer capital gains tax, deferred gain

1031 Exchanges

Posted by Andy Gustafson on Thu, Feb 02, 2012

A 1031 exchange is many things but at the core, it is a tax deferral. When real and personal property is held for productive use in a trade, business or for investment is sold, federal and state capital gains and recaptured depreciation taxes are triggered that can amount up to 40 percent of the sales price. The tax is postponed when replaced with like-kind property within 180 calendar days of when the real or personal property was sold. The tax obligation does not go away unless you pay the tax, die or donate the property to a charity.

Read More

Tags: tax free exchange, 1031 exchange, defer capital gains tax

Tax Implications of Selling a Ranch: Two Tax Deferral Strategies

Posted by Andy Gustafson on Mon, Jan 30, 2012

The kids have grown, the company no longer uses the property as a retreat, the taxpayers want to downsize or the price offered represent a number of reasons why taxpayers decide to sell their ranch. When selling, taxpayers want to know what the tax implications are, if the capital gains taxes can be deferred, and what planning steps are required.

Read More

Tags: deferred sales trust, 1031 exchange, defer capital gains tax

1031 Exchange: Leasehold - Wind Turbine, Billboard, Cell Tower

Posted by Andy Gustafson on Wed, Dec 07, 2011

A 30 year or more leasehold of land is considered like-kind to a fee interest in land. Providing that the taxpayer has the right to extend the lease, the thirty year leasehold interest is eligible for Internal Revenue Code Section 1031 exchanges, allowing the taxpayer to defer federal and state capital gains while replacing with any type of real property.

Read More

Tags: like-kind exchange, defer capital gains tax, leasehold interest

1031 Qualified Intermediary: Institutional Vs. Non-Institutional

Posted by Andy Gustafson on Mon, Nov 07, 2011

When selling real estate or expensive equipment, your Certified Public Accountant (CPA) or attorney might recommend engaging a qualified intermediary (QI) to accommodate a 1031 tax deferred exchange to maximize your tax benefits. The 1031 exchange allows owners of apartments, single-family rentals, office buildings and equipment to defer the federal and state capital gains and recaptured depreciation taxes. There are multiple players in the 1031 exchange market place that could serve as QIs, and they could be grouped into two major categories of “institutional” and “non-institutional” QIs. So, what is the difference between the two? Should this classification impact your decision-making process when selecting a QI?

Read More

Tags: 1031 exchanges, qualified intermediary, defer capital gains tax

Deferred Sales Trust: Alternative to 1031 Exchange

Posted by Andy Gustafson on Sat, Sep 10, 2011

A Deferred Sales Trust (DST) is a tax deferral and asset diversification strategy that can be a compelling alternative to a 1031 Exchange for appropriate clientèle owning highly appreciated real and personal property, and businesses. Taxpayers and consulting professionals should consider this strategy if they or their clients want to defer federal and state capital gain and recaptured depreciation taxes, prefer a more diversified asset portfolio and/or more predictable income stream, and choose not to acquire like-kind replacement property.   

Read More

Tags: deferred sales trust, 1031, defer capital gains tax

Three Farmland Trends Impacting Use of 1031 Exchanges

Posted by Andy Gustafson on Thu, May 26, 2011

With the price of food beginning to increase, the underlying value of farm land has followed impacting the use of 1031 exchanges. Tax deferred exchanges have provided farmers multiple benefits besides deferring capital gain taxes when equal or greater real property is replaced. Some farmers elect for less labor intensive real estate such as oil and gas royalties, single tenant triple net leases with a CVS pharmacy or Tire America to owning commercial buildings with corporate client tenants in a tenants in common or TIC.

Read More

Tags: 1031 exchanges, defer capital gains tax, farm land

Forward or Delayed 1031 Exchange in Three Steps

Posted by Andy Gustafson on Wed, May 18, 2011

A delayed or forward 1031 exchange is when the old or relinquished property is sold and subsequently replaced with property in a second transaction. The 1031 exchange benefit is the tax deferral or postponement of the capital gains triggered upon sale. The tax deferral is an interest free loan the Exchangor enjoys for as long as the replacement property is owned. 

Read More

Tags: forward 1031 exchange, defer capital gains tax

Defer Capital Gains Tax With A Like-Kind Exchange

Posted by Andy Gustafson on Thu, Nov 11, 2010

Capital gains and recaptured depreciation taxes can be deferred indefinitely with a 1031 like kind exchange.  Like-kind exchanges are recognized by the Internal Revenue Service when specific rules and guidelines are followed in accordance with Section 1.1031 of the Internal Revenue Code. 

Read More

Tags: like-kind exchange, defer capital gains tax

Initiate Your 1031 Exchange with a Certified Exchange Specialist

cta\u002Dfree\u002Dconsultation  

Download Complimentary 1031 Issues to Consider

Top 1031 Issues to Consider

Sign Up for Weekly 1031 Exchange Blog

Follow Atlas 1031

Most Popular Posts

Browse by Tag