Two Properties Exchanged for One Property of Lesser Value
FACTS–A very bright client of ours purchased two different properties a number of years ago. These two properties were in a developing area of Miami-Dade County. Additionally, both of these lots had neighboring properties that were raw acreage. These two (2)...Converting an Apartment Building Into a Condominium – Is This a Viable 1031 Exchange Procedure?
The case law on this type of 1031 Exchange transaction shows that the IRS may consider the exchanger to be a “Dealer” rather than an investor which will disqualify the transaction as a 1031 exchange relinquished property sale. The case law varies in...Everything You Need to Know about 1031 Property Identification
The Basic 1031 Identification Rule Is:The Exchanger has only 45 days from the day of closing on its relinquished property to identify possible replacement property. WARNING: Section 1031 and the IRS regulations thereunder have strict requirements for the...What Taxes Will be Due When Replacement Property Cost is Less Than Gains Received?
First, it is not only the capital gains tax that the taxpayer will be deferring payment on, when transacting a Section 1031 exchange, it’s also the additional depreciation recapture tax on the relinquished property, as well as any State income taxes if any. The rules...About Stephen A. Wayner, Esq., CES
Stephen Wayner is an attorney, Certified Exchange Specialist (CES), and Managing Director of Liberty 1031. Mr. Wayner is recognized as a leading authority on the subject of 1031 exchange transactions. He is a current board member of the Federation of Exchange Accommodators (FEA) and is the author of numerous books and articles on 1031 Exchanges and real estate investing.
Mr. Wayner has been cited as an expert on 1031 Exchanges in publications including USA Today, NewYork Times, Business Week, and The Wall Street Journal among many others.