The Importance of the (g)(6) Restrictions in Exchange Agreements – the OTA’s Decision in Kayyem

The Importance of the (g)(6) Restrictions in Exchange Agreements – the OTA’s Decision in Kayyem

The Importance of the (g)(6) Restrictions in Exchange Agreements – the OTA’s Decision in Kayyem By: Michael Wiener If you look closely at your exchange agreements, you will notice references to “Treas. Reg. 1.1031(k)-1(g)(6).”  While this language may seem like simple boilerplate, the failure to include this language can result in a disallowed 1031 exchange, […]

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Utilizing the Full Exchange Period When a 1031 Exchange Spans Two Tax Years

Utilizing the Full Exchange Period When a 1031 Exchange Spans Two Tax Years

Utilizing the Full Exchange Period When a 1031 Exchange Spans Two Tax Years By: Juno Kenny In a 1031 exchange, there are two crucial deadlines that must be strictly adhered to. The 45-Day Identification Deadline which dictates when replacement property must be identified by, and the 180-Day Exchange Deadline which dictates the latest date that […]

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Build-to-Suit 1031 Exchange

Build-to-Suit 1031 Exchange

Build-to-Suit 1031 Exchange By: Shannon Kinnard A build-to-suit exchange, also known as a construction exchange or improvement exchange, offers an exchanger the opportunity to use exchange funds for construction and improvements/renovations to the property they’re acquiring. In a build-to-suit exchange, like in a reverse exchange, an Exchange Accommodation Titleholder (“EAT”), which is typically a limited […]

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What is a Ground Lease 1031 Exchange?

What is a Ground Lease 1031 Exchange?

What is a Ground Lease 1031 Exchange? By: Shannon Kinnard A critical requirement in a 1031 exchange is that the property being sold and the property being acquired must be considered “like-kind” to each other. Properties are like-kind for 1031 exchange purposes if they are of the same nature, even if they differ in grade […]

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The Debt Replacement Requirement in a 1031 Exchange

The Debt Replacement Requirement in a 1031 Exchange

The Debt Replacement Requirement in a 1031 Exchange By: Juno Kenny In order to achieve full capital gains tax deferral in a 1031 exchange, one of the requirements is that an exchanger needs to purchase a property of equal or greater value than the property that they sell. Some of the closing costs associated with […]

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Related-Party Section 1031 Exchanges

Related-Party Section 1031 Exchanges

Related-Party Section 1031 Exchanges By: Warren J. “Skip” Kessler As the adage goes, “Don’t do business with relatives.” If a taxpayer enters into a Section 1031 tax-deferred real property exchange (an “Exchange”) with a relative or with a “related person” the adage can prove costly. Some years ago, Congress was concerned about the following type […]

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This information is intended as general guidance only and may or may not apply to a particular situation based on the circumstances. Genesis Bank makes no claims or guarantees regarding the accuracy or timeliness of this information.