1031 Exchange

Save Your Buyer Money on Closing Costs

Two Easy Ways To Save Your Buyer Money On Closing Costs

New York is used to coming in number one in lots of contests. And in the competition for highest closing costs, it does not disappoint, consistently having the highest average closing costs of any city in the country year after year. But a couple of rules about how certain closing costs are calculated can save …

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Converting 1031 Replacement Property To A Principal Residence

Converting 1031 Replacement Property To A Principal Residence

One of the hidden benefits of doing a Section 1031 exchange is that the code permits the taxpayer to change the use of the replacement property without triggering a realization of the deferred gain that was accumulated into it! But, like so many other rules in this area, strict compliance with the guidelines is required. …

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1031 Exchange Tax Return Selling Property Residential Real Estate Law

Filing Your Tax Return After Selling Property in a 1031 Like Kind Exchange: A Hidden Landmine in a Safe Harbor

Section 1031 which permits deferral of gains for the sale and subsequent acquisition of a “like kind” property is a powerful tax device for savvy investors. But the rules governing exchanges are a “safe harbor,” meaning that the failure to comply exactly with these technical rules will violate the exchange and force the taxpayer to …

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Residential Real Estate Attorney Exchangers Guide

An Exchanger’s Guide to Boot

A like-kind or 1031 exchange is a powerful tactic to create enormous wealth over an investor’s lifetime. We discuss the rules regularly here in this forum, but one of the most common questions that causes confusion is the concept of “boot.” Let’s start with the basics, what is boot? Most of us have traded in …

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1031 Exchange Residential Real Estate Law Guide

Second Homes and the 1031 Exchange

A 1031 exchange can be used to defer capital gain taxes on the sale of property held for business, trade or investment. The guidelines for a successful exchange must be followed carefully or the IRS may disallow the exchange. I am often asked whether a property that is used by the owner as a vacation …

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1031 Exchange Residential Real Estate Law

The 1031 Adviser: Converting 1031 Replacement Property into a Principal Residence

It’s not uncommon for an investor to convert a property held for business, trade or investment into one’s principal residence. Change in investment potential of the property, or a desire to get out of the landlord business, might make the investor decide to change the use into one held as a primary residence. And prudent …

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1031 Exchange Residential Real Estate Law

Exchange Basics: The Rules for Identifying Replacement Properties

A 1031 exchange is a great way for investor’s to develop significant wealth by deferring capital gains tax on the sale of assets that are replaced with like-kind properties. But this generous benefit of the Internal Revenue Code comes with a caveat: the rules for the safe harbor created must be followed exactly, and errors …

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