

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 more >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 […]
Read more >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 […]
Read more >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 […]
Read more >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 […]
Read more >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 […]
Read more >Refinancing 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 more >In 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 more >Tenants 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 more >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.
Read more >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.
Read more >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.
Read more >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.
Read more >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.
Read more >Genesis Bank Exchange recently executed an exchange for a client navigating the sale of a commercial property in California and the purchase of a commercial property in the Midwest. This transaction employed both a forward exchange and a reverse exchange, showcasing a strategic approach that can benefit investors seeking tax deferral opportunities.
Read more >Genesis Bank, the Genesis Bank Institute for Entrepreneurship (GBIE), and the Genesis for Good Foundation (GFG), along with Fiserv, Inc. (NYSE: FI), announced the Genesis For Good Catalyst Empowerment Grant Program. This innovative program serves to empower historically marginalized and underinvested entrepreneurs and positively impact diverse business communities across Southern California.
Read more >Join us in celebrating Small Business Week by exploring Pristine Plumbing, a thriving Black-owned enterprise under the leadership of visionary President Richard Cadogan! Since 2008, Pristine Plumbing has been delivering top-notch service to residential and commercial properties across Orange County. Their track record speaks volumes about their commitment to quality and customer satisfaction.
Read more >In honor of Women’s History Month, and coinciding with their one-year incorporation anniversary on March 29th, we are proud to spotlight Genesis Bank client, Gloves For Grief, a 501(c)3 nonprofit organization founded by Terra Pickett and Ashley Guarrasi. Their personal experiences with grief led them to create a powerful and purpose-driven organization that provides essential resources and support to grieving families.
Read more >Real estate is often owned by partnerships (or LLCs that are taxed as partnerships). Therefore, partnerships are often involved in 1031 exchanges. Partnership 1031 exchanges involve issues that do not exist in exchanges conducted by other types of taxpayers, such as individuals, trusts, or corporations.
Read more >Embarking on a 1031 exchange journey opens doors to exciting possibilities in real estate investment. One crucial step in this process is identifying replacement property—a decision that can significantly impact the success of your exchange. At Genesis Bank Exchange, we understand the complexities of this process and are here to guide you through it.
Read more >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.