Lucas Santhon, Author at Genesis Bank GBIE

Closing Costs in a 1031 Exchange

Closing Costs in a 1031 Exchange By: Shannon Kinnard When navigating a 1031 exchange, it’s important for investors to know how to handle closing costs and other expenses. Routine transactional costs associated with the sale of the relinquished property and the acquisition of the replacement property can often be paid from the exchange funds. However, […]

Agriculture Exchanges

Agriculture Exchanges By: Juno Kenny All real property within the United States is considered eligible for a 1031 Exchange, including land used for agriculture purposes. However, there are some unique aspects of agriculture exchanges that should be considered to ensure the maximum benefit of any tax deferral received. What is Eligible for an Agriculture Exchange? […]

Refinancing Property Prior to an Exchange

Refinancing Property Prior to an Exchange By: Michael Wiener In a post published last year, we discussed the tax issues involved in refinancing a replacement property shortly after the completion of an exchange. Similar issues exist when a taxpayer refinances its relinquished property shortly before an exchange. Consider the following example. Taxpayer owns Property A, […]

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, […]

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 […]

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 […]

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 […]

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 […]

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 […]

From Security to Expertise: The Essentials of Choosing a Qualified Intermediary for Your 1031 Exchange

When looking for a Qualified Intermediary (“QI”) to handle your 1031 exchange, there are some important factors to consider such as the security and safety of your funds, quality of customer service, and expertise. Keep reading to find out some of the ways Genesis Bank Exchange sets themselves apart.