1031 services represent the accommodation of 1031 tax deferred exchanges. The Internal Revenue Code (IRC) Section 1031 states “no gain or loss is recognized when property held for productive use in a trade, business or investment is exchanged for property held for productive use in a trade, business or investment.” The 1031 exchange defers the recognized gain or capital gains tax due until the sale of the replacement property. Another 1031 exchange can be initiated as often as needed.
1031 Exchange Blog
Over the past 17 years, we have had the pleasure of guiding thousands of Exchangors through the 1031 Exchange process. Our Blog draws from that experience and includes content ranging from the basics of an Exchange for first time Exchangors to detailed commentary on complex exchanges for the expert investor. If you do not find the topic or specific question you are looking for, reach out to us via email at info@atlas1031.com or call our office to speak with our team at 1 800 227 1031.
LKE Analysis
One of the fundamental rules of a 1031 Exchange is that the properties exchanged must be of “like-kind”. Given the importance of this rule, understanding what qualifies as “like-kind” is imperative to using a 1031 Exchange to your advantage. If the transaction qualifies for Section 1031 Exchange treatment though, the capital gains tax obligation can be deferred, potentially saving a substantial amount of money that can then be re-invested.
Mineral Interests and 1031 Exchange
In most transactions for the sale of real property, capital gains taxes are levied on any realized gain as a result of the sale. One way to defer the payment of capital gains taxes is to enter into a Section 1031 Exchange instead of completing a conventional sale of the property. In order to qualify for 1031 Exchange consideration, the property exchanged must meet very strict guidelines, including the requirement that the property exchanged be “like-kind”. While the exchange of some types of real property clearly meet the Internal Revenue Service guidelines, determining whether other types of property interests qualify can be more complicated. For example, certain oil, gas and mineral interests are potentially eligible for Section 1031 Exchange treatment, while others are not eligible.
1031 Exchange: Land for Rental Property
Chris Kim was referred to Atlas 1031 Exchange by his Realtor to accommodate the 1031 exchange of vacant land for a rental property in different cities in Texas. The old or relinquished property was sold and the exchange proceeds were wired to an escrow account established under his tax identification number in Leesport, Pennsylvania with VIST Bank. Chris identified a couple of properties as potential replacement property by the 45th calender day post closing. After negotiating the purchase contract for rental property, the closing was held and the exchange proceeds were wired the day before the closing.
1031 Qualified Intermediary Exchange Fee
1031 exchange fees, for many first time exchangors, represent their most important take-away when interviewing prospective Qualified Intermediaries (QIs). In this day of instant information, QI services though specialized, are commoditized by the consumer. This article is about insight from a QI’s perspective of the exchangor’s mindset after realizing they need to find an accommodator or facilitator of 1031 tax deferred exchanges.
Foreign Investment in Real Property Tax Act (FIRPTA)
The Foreign Investment in Real Property Tax Act of 1980, or FIRPTA, is a federal law that applies to any disposition of real property by a foreign person. In general, FIRPTA requires that ten percent of the amount realized from the disposition of the property be withheld and remitted to the Internal Revenue Service after the closing on the property. Understanding how FIRTPA operates, when it applies, and what exceptions may be available is important for anyone involved in real property transactions.