Discussion:Forum 1031 exchange
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Dextertaxman (talk|edits) said: | 18 December 2005 |
| Can I sell real estate, just land, no building for cash money and then reinvest within so many days to avoid recognition of gain... | |
Hubert Altman (talk|edits) said: | 18 December 2005 |
| yes, you have to get a lawyer or real estate agent to help you with this likekind exchange. | |
Hubert Altman (talk|edits) said: | 18 December 2005 |
| i am sorry no. you can not take cash and rinvest. an account must be set up by lawyer or an real estate agent that deal with this. | |
| 19 December 2005 | |
| You need to follow the section 1031 exchange rules and the gain can be rolled into the next investment. You may not touch the money is one of the rules. | |
| 20 December 2005 | |
| I have a client that was in a partnership with his fiancée before they married. After they married, they continued the business as a partnership. They live in a community property State and did not sign a prenuptial agreement. They received an offer for their business and would like to do a 1031 exchange; however, partnership interests are excluded from 1031 treatment. I remember a courtcase a few years ago that allowed 1031 treatment for a comparable situation, but was unable to find it or an appeal since I am sure that the IRS would not acquiesce.
Charles Hays, E.A. | |
| 20 December 2005 | |
| Haychuck, the IRS has recently ruled that if you are in a community property state, you can treat the husband and wife as one taxpayer. See Rev. Proc. 2002-69, 2002-2 CB 831. You may have to double check the community property laws in your state to see when property technically "becomes community property." Per my usual advice, have an attorney check into this for you.
I give you this cite with a HUGE caution, I don't know much about 1031 exchanges so I'm not sure if the business interests you are describing qualify in general for 1031, ignoring the partnership issue. My response simply answers part of your question regarding husband/wife ownership of a business, but does not address other potential 1031 issues. | |
| 6 April 2006 | |
| Question: my client sold a 1031 property and rolled it into two properties. Now, he's going to sell one and keep the other. Does original basis get allocated (% of FMV) to the two new properties? That seems logical... but this is the IRS, so I don't know. | |
| 15 September 2006 | |
| Question: I have a property which I bought in dallas for 110k cash and now I am selling that property for 165k. So I have a net gain of 55k. I am now in the process of a 1031 exchange and looking for a new property to invest the money into. Is it possible to take out some if not all of the cash which I invested into the dallas property(110k) and then take the 55k and invest it into a new property which will I will buy for atleast 165k? I do not want to be taxed and dont understand why I cant take out my 110k which I invested as cash. Any help on this issue? | |
| 18 September 2006 | |
| Vanilla, yes allocate basis based on FMV of two properties purchased
Hansgill, must reinvest all cash into new deal for 165k or better. Two months later take out equity loan on new property and put cash in pocket. | |
| 19 June 2007 | |
| Question: I just bought property and have already recorded the deed in my name. I want to sell a like kind property. Is there any way I can do a 1031 exchange, even though i have already bought the "like kind" without using a 1031 transaction - i.e. is there any way to "go back" and correct that, so that it can be used as the bought property in a "reverse exchange"? | |
| 19 June 2007 | |
| http://www.firstexchange.com/extopics11.html
I believe this link will take to the information you need. It looks like you would have needed an intermediary for the purchase in order to qualify. | |
Death&Taxes (talk|edits) said: | 19 June 2007 |
| And as with everything in taxes, there is a colorful name for this: a 'Reverse Starker.' Here is another decent reference: http://filelibrary.myaasite.com/Content/1/1613/12270279.pdf | |
| 24 July 2008 | |
| In a 1031 exchange transaction, the seller has 45 days from the close of escrow on his/her property (the relinquished property) to identify a replacement property(s). The replacement property(s) must be of equal or greater value in order for 100% tax-deferral to be recognized. The investor then has 180 days from the close of escrow of the relinquished property to acquire the replacement property(s).
EXAMPLE: Sale Price = $1,000,000 Equity = $500,000 Mortgage = $500,000 Replacement Property = $1,000,000 or greater (at least $500k equity/at least $500k debt) The relinquished property or the property sold may be any property held for investment or business purposes. The replacement property(s) must be “like kind” real estate in order to qualify for the 1031 Exchange. | |
| 24 July 2008 | |
| my vote is sneaky solicitation - while the info is good and accurate, it should be noted that the link is to his commercial site. | |
| July 24, 2008 | |
| The thirteen month time delay in answering made me a bit suspicious....I haven't checked out the link yet. edit: Now I have and it does appear to have good info! | |
