How to Defer Capital Gains Tax Liability on a Commercial Foreclosure

  How to Defer Capital Gains Tax Liability on a Commercial Foreclosure Unsuspecting commercial investors are driving to the bank to turn in their keys on projects that did not workout as planned and waking up the following year with an unexpected tax headache. The discharge of the loan can result in a capital gains […]

Navigating Closing Costs and the 1031 Tax Deferred Exchange

Navigating Closing Costs and the 1031 Tax Deferred Exchange When entering into a 1031 exchange one often does not consider the ancillary costs that come with closing the transaction. Often the assumption is made that these costs will be subsidized by the 1031 exchange proceeds. However, while some of these costs certainly can be bankrolled by the […]

Development: Roth IRA offers New Opportunities

Development: Roth IRA offers New Opportunities Starting in 2010, the existing income test for converting a traditional IRA to a Roth IRA that kept many commercial real estate investors from ever contemplating a Roth IRA no longer applies. Singles making more than $95K and couples making more than $150K are now eligible for this tax […]

1031 Reverse Exchanges

1031 Reverse Exchanges What is a Reverse Exchange? In terms of complexity, a “Forward 1031 Exchange” is relatively simple, and is the most common type of tax deferred exchange.  Section 1031 of the I.R.C. of 1986, as amended, provides “Safe Harbor” procedures for a Forward Exchange which include the use of a Qualified Intermediary (“QI”).  […]

Hidden Dangers of Partnerships and the 1031 Exchange

Hidden Dangers of Partnerships and the 1031 Exchange The Section 1031 “like-kind” exchange is a legal tool utilized by many investors to upgrade their real estate holdings while deferring taxation. Theoretically, investors can exchange properties indefinitely without incurring capital gains tax. However, complications can arise when these investments are made by partnerships. It is almost […]

1031 Exchange Oil and Gas Production

1031 Exchange Oil and Gas Production One of the most unique aspects of the 1031 Exchange process is the ability to rebalance or diversify the real estate sector of an investment portfolio by relinquishing a property or properties for a “fractional interest” in an oil and gas production as a “like kind” property. A “fractional […]

The 1031 Exchange in Relation to Vehicles

The 1031 Exchange in Relation to Vehicles It is widely known that 1031 exchanges apply to different property types, such as office to multifamily or even raw land to oil wells. However there is usually some uncertainty about using a 1031 exchange in the case of vehicles, such as airplanes or boats. The rule of thumb in […]

How Seller Financing Can Provide the Financial Flexibility the Market Craves

How Seller Financing Can Provide the Financial Flexibility the Market Craves We often hear about how the lines of credit have dried up in our current market. Banks are hesitant to lend even to the most credit-worthy individuals, and as for those of us who may not be as qualified…well let’s just say our inquiries […]

Advanced Construction Exchange Strategy (ACES)

Advanced Construction Exchange Strategy (ACES) A common misconception real estate developers have regarding Section 1031 is that developers are prohibited from using exchange proceeds to improve property that they already own. However, there are times when a developer may want to sell one of his properties and invest its proceeds in another he or she […]