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Using a White Knight to Rescue a Failing Reverse Exchange

What is a Reverse Exchange and What Causes it to Fail?

A conventional IRC §1031 tax deferred exchange involves, among other things, a taxpayer’s sale of old property (the “relinquished property”) followed by the purchase of new property (the “replacement property”) within a 180 day period (see http://www.accruit.com/1031-news/%C2%ADare-tax-deferred-exchanges-real-estate-approved-irs ). A so-called reverse exchange takes place when the taxpayer is forced to acquire the replacement property, or face losing it, prior to the sale of the relinquished property.  The sequence of the disposition and acquisition is “reverse” from the conventional transaction.

Video: What is Like-Kind in a 1031 Like-Kind Exchange?

What qualifies as like-kind in a 1031 like-kind exchange? In this video, Paul Holloway discusses specific examples of like-kind real estate including lesser known types such as mineral interests, water rights and fractional ownership interests.

Video: 1031 Like-Kind Exchange with Seller Financing

Is it possible for a property seller to finance the buyer when completing a like-kind exchange? The answer is yes but only under certain conditions. Such factors include the time period of the seller's loan, the potential of a cash loan from the seller to the buyer, and the use of a qualified intermediary as the loan recipient.

Video: 1031 Property Improvement Exchanges

Paul Holloway explains how improvements made to the replacement property can be part of your 1031 like-kind exchange.

Video: 1031 Exchanges of Personal Property - Overview

Asher Azim walks viewers through the basics of a 1031 like-kind exchange of business-use assets (in this case, construction equipment) in which a business owner is able to defer taxes when selling equipment and purchasing like-kind equipment.

Video: How does a reverse 1031 exchange work?

In this video, Paul Holloway presents a five-minute overview of a reverse exchange,which allows ataxpayer to purchase a replacement property prior to selling the property they wish to relinquish in a 1031 exchange.

Video: Ten Steps to a Successful Reverse 1031 Exchange

A reverse 1031 exchange allows the taxpayer to purchase a replacement property prior to selling the property they wish to relinquish in a 1031 exchange. In this video, Paul Holloway walks through the ten steps of a reverse exchange.

Video: 1031 Exchange Same Taxpayer Rule

In this video, Paul Holloway discusses the same taxpayer rule for a 1031 like-kind exchange tax deferral.

Video: 1031 Like Kind Exchange Deadline Dates

In this video, Paul Holloway discusses the 45-day rule and the 180-day rule deadlines for a 1031 like-kind exchange tax deferral.

Video: 1031 Like-Kind Exchange Identification Rules

When it comes to identifying replacement property in a 1031 exchange, there are three rules of the identification process that you must know.

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