

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, […]
Read moreUtilizing 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 […]
Read moreBuild-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 […]
Read moreWhat 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 […]
Read moreThe 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 […]
Read moreRelated-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 […]
Read moreRefinancing properties allows real estate owners to presently benefit from their properties’ appreciation on a tax deferred basis. Because the borrower is obligated to repay the refinancing loan, refinancing a property by itself does not increase the borrower’s wealth and, therefore, does not result in taxable income. Rather, the borrower will only have taxable income if and when it sells the refinanced property in a taxable sale. However, if the property being refinanced was recently acquired in a section 1031 exchange, there is a risk that the net refinancing proceeds will be treated as unused proceeds from the sale of the relinquished property, which will result in taxable “boot”.
Read moreIn the 1031 exchange industry, we often come across clients looking to reposition or restructure their real estate portfolios. 1031 exchanges can be an effective solution because they allow investors to preserve the value of their invested capital through tax deferral.
Read moreTenants in common (also known as tenancy in common or TIC) is a type of ownership agreement that allows multiple investors to jointly purchase a single property. Each investor owns an undivided interest in the property and typically receives proportionate interest in income and growth.
Read moreWhen 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.
Read moreThis 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.