1031 Exchange Basics
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...
1031 Exchange Basics
Invariably, when I give a seminar or speech on 1031 exchanges, a question on mixed-use 1031 exchanges is raised. What is mixed-use? Pretend my last name is McDonald. Further, pretend that I am a farmer. AND on my farm–E- I, E- I – O, –ENOUGH of the...
1031 Exchange Basics
What is the Bundle of Rights Theory? If you were to scrape off the outer covering of an electrical cord to your TV set, you would find a number of intertwined electrical wires. You, the owner of the TV set and its attached electrical cord, would own all of the...
1031 Exchange Basics
When using a Section 1031 Exchange transaction to defer taxes, the Exchanger has only 45 days from the day of closing on its relinquished property to identify 1031 replacement property or multiple replacement properties. Below are three rules for identifying multiple...
1031 Exchange Basics
THE PROBLEM: On a Section 1031 Tax Deferred Exchange, the taxpayer has 45 days from the closing of the sale of the relinquished property, to identify possible replacement properties. Should the taxpayer close on the sale of their relinquished property on or...
1031 Exchange Basics
THE PROBLEM: For a Section 1031 Exchange, where the relinquished property was transferred between October 19, 2016, and December 31, 2016, you might not have a full 180 days to close on your replacement property. The reason lies in Treasury Regulation Section...
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.