Final Regulations Defining Real Property

On November 23, 2020, the IRS issued the final regulations defining real property for Section 1031 purposes. The proposed regulations were issued in June 2020. The FEA and several other parties submitted comments to the IRS on the proposed regulations in August. The IRS responded to the various comments in the final regulations by significantly expanding the definition of real…

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45 and 180 Day Extensions for Disaster Areas in California and Iowa

From the FEA Government Affairs Committee:  The IRS has issued extensions as follows: California: Lake, Monterey, Napa, San Mateo, Santa Cruz, Solano, Sonoma and Yolo counties that began on August 14, 2020.  Iowa: Linn County on August 10, 2020. Listed counties are the “Covered Disaster Area”. [Please check the IRS disaster website periodically at the address listed below for updates because…

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Start an Exchange

With the help of an expert, starting a 1031 Exchange can be hassle-free. If you have an interest in saving money through investments, you are already well on your way to starting an exchange. Once you’ve decided to pursue a 1031 Exchange, contact the experts at Prime West Exchange.  Even if you are still uncertain…

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Exchange Terminology

1031 Exchanges, or tax-deferred exchanges under IRC §1031, have their own language. Like other areas of law, this language might be confusing to those unfamiliar with this specific type of transaction. Following are some important terms and phrases that can help break down 1031 Exchanges. Adjusted Tax Basis – Tурісаllу the іnіtіаl аmоunt paid for…

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Exchange Basics

Whether you’re an established real estate investor or enthusiast, you’ve probably heard of a 1031 Exchange. As the name implies, the process involves exchanging one old “relinquished” property for a new or “replacement,” property. You will reinvest the proceeds from the sale of your investment property into a like-kind investment property to defer paying capital…

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What is a 1031 Exchange?

A 1031 Exchange is a transaction in which a taxpayer may exchange one investment property for one or more properties, deferring the tax consequences of a sale. Does a 1031 Exchange work with personal property? No. Onlу, Rеаl Eѕtаtе (also known as ‘real property’) that is hеld “for investment purposes” quаlіfіеѕ fоr a 1031 Exchange.  …

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How to Identify a Replacement Properties in a 1031 Exchange

Identifying new or “replacement” properties for a 1031 Exchange requires a working knowledge of tax requirements and protocol. Knowing your limitations and restrictions can make your exchange go more smoothly and efficiently. Thus, it is important to talk to a qualified expert to get the counsel you need to move forward with your exchange and…

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