Lucas Santhon, Author at Genesis Bank GBIE

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.

Unlocking Success: The Strategy Behind Partnership Divisions for Tax Compliance

In the article that appeared in last month’s blog, I indicated that we utilize a structure that avoids the taxing authorities’ challenges to “drop and swap” transactions and, instead, that is structured to comply with an Internal Revenue Code provision and the Treasury Regulations. The transaction is known as a “partnership division” and this article will describe how and why it is a safer alternative compared to a drop and swap structure.

Decoding Franchise Tax Board’s Hot Button Areas: Drops and Swaps and Post-Closing Refinancing

Those of us in California who give advice regarding the structuring of IRC Section 1031 like-kind tax-deferred exchanges of real property are well aware that the California Franchise Tax Board (FTB) has an active program of auditing these transactions. There seems to be no rhyme or reason as to how the FTB’s audit algorithm works. In some instances, exchange transactions of more than $100,000,000 are not audited, while others involving $3,000,000 are audited.

Navigating Seller Financing in 1031 Exchanges: Strategies and Challenges

With interest rates remaining high, seller financing continues to be an attractive option for real estate investors nationwide. Because of this, we will outline some of the issues that arise when offering seller financing while performing a 1031 Exchange. While it can be done, you must plan accordingly beforehand to avoid any potential missteps.

Ensuring Secure Section 1031 Exchange Transactions with Genesis Bank Exchange

At Genesis Bank Exchange, we take pride in being both a Qualified Intermediary (QI) and a division within Genesis Bank. This dual role allows us to offer unparalleled safety and security for your funds, coupled with state-of-the-art execution of Section 1031 exchange transactions. One key way we achieve this is through our advanced technology and expertise in wire transactions.