1031 Exchange Archives - Genesis Bank GBIE

Considerations for a Successful 1031 Exchange

Considerations for a Successful 1031 Exchange By: Juno Kenny As with all complicated processes, even the most well-intentioned investor can run into issues without the proper planning and advice. For this reason, it is crucial that exchangers are aware of any potential issues they may run into before taking part in an exchange. In this […]

1031 Exchange Frequently Asked Questions

1031 Exchange Frequently Asked Questions By: Shannon Kinnard A 1031 exchange is a tax strategy which allows investors to defer taxes from the sale of a qualifying property. While that may sound simple enough, the exchange process can be multifaceted and require careful coordination. Below are the answers to some common frequently asked questions: How […]

Same Taxpayer Requirements in a 1031 Exchange

Same Taxpayer Requirements in a 1031 Exchange By: Shannon Kinnard Understanding the same taxpayer rule is an important part of the 1031 exchange process. In order to qualify for 1031 exchange treatment under IRS guidelines, the taxpayer that sells the relinquished property must also purchase the replacement property. This rule applies to any taxpayer, whether […]

A Brief Guide to Starting a 1031 Exchange

A Brief Guide to Starting a 1031 Exchange By: Juno Kenny Some of the most common questions that we are asked as a Qualified Intermediary (QI) when speaking with potential clients are “How do we get started?” and “When is the best time to involve a QI?”. For everyone’s convenience, we have created a short […]

Taking Cash Out of a 1031 Exchange

Taking Cash Out of a 1031 Exchange By: Shannon Kinnard The exchange process can be complex so careful planning can help you maximize the tax benefits. One scenario some investors come across is wanting to take cash out of a 1031 exchange. There are some restrictions and some alternative options for investors to keep in […]

Exchanging Into Improvements on Exchanger’s Own Land

Exchanging Into Improvements on Exchanger’s Own Land By: Michael Wiener Clients often ask whether they can construct improvements on land they already own as replacement property in their exchange. As demonstrated by a recent IRS private letter ruling,[1] with enough advance planning, it may be possible. [2] The taxpayer in the ruling was a limited […]

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, […]