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Types of Exchanges
Combining Seller Financing
Combining Seller Financing with Tax Deferred Exchanges
In most cases, it is preferable for the seller (Exchanger) to receive all cash for the sale of the relinquished property. However, many real estate sale transactions require the seller to "carry back" a part of the purchase price as financing to assist the buyer in purchasing the property
Types of Exchanges
Converting a Rental to a Residence
CONVERTING A RENTAL TO A RESIDENCE:
MANY TAXPAYERS CAN TAKE ADVANTAGE OF TWO TAX CODE SECTIONS.
Types of Exchanges
Installment Sales
An installment land sales contract (also known as a contract for deed or a contract of sale) is an agreement between the Seller and the Buyer for the purchase of real property in which the payment of all or a portion of the purchase price is deferred.
Types of Exchanges
Multiple Asset Exchange
Many times exchangers own property that consists of both real and personal property, such as a hotel or restaurant. An exchange of such a multiple asset property creates issues when trying to allocate the various assets into their proper like-kind categories using a property-by-property comparison.
Types of Exchanges
Other Interest in Property
In addition to a fee interest in real property, certain other interests in real property may be exchangeable as replacement property.
Types of Exchanges
Partnership,LLC and REIT Issues
In general, exchanges of partnership interests are excluded from non-recognition treatment under IRC 1031(a)(2)(D), as enacted in the Tax Reform Act of 1984.
Types of Exchanges
Personal Property Exchange
Deferring capital gain and other taxes through an IRC 1031 tax deferred exchange is also available for personal property held for investment or for productive use in a trade or business.
Types of Exchanges
Property Held for Resale
The intent by the taxpayer to hold property "primarily for sale" will prevent the property from qualifying for IRC §1031 treatment. Over the years the courts have struggled with this exclusion from tax deferred exchange treatment.
Types of Exchanges
Refinancing Before and After the Exchange
Refinancing to pull equity out of a property prior to or after completing a tax deferred exchange can result in a taxable transaction under the "step transaction doctrine."
Types of Exchanges
Tax Deferred Vacation Property Exchange
Do They Qualify for Tax Deferral? What About Second Homes?
Property owners throughout the nation are obtaining
the benefit of full reinvestment of equity under Internal
Revenue Code §1031.
Types of Exchanges
The Build-To-Suit 1031 Exchange
5) unit exchange, also referred to as a construction or improvement exchange, gives the Exchanger the opportunity to use all or part of the exchange funds for construction of the replacement property and still accomplish a tax deferred exchange.
Types of Exchanges
The Delayed 1031 Tax Exchange
There is a common misconception that all tax deferred exchanges are complicated and require all properties, relinquished and replacement, to close concurrently
Types of Exchanges
The Reverse Tax Exchange
A reverse exchange is the flip side? of a deferred (delayed) exchange. In a reverse exchange the Exchanger for various reasons must acquire their like-kind replacement property before disposing of a relinquished property.
Types of Exchanges
The Simultaneous Exchange
The Qualified Intermediary provides the following important services: Shields parties (Exchanger, buyer and seller) from certain liabilities; Ensures the preservation of safe harbor treatment under the 1991 Treasury Regulations; Provides a paper trail validating the flow and structure of the transaction; and Reduces the agent and closing officer's liability for the exchange structure.
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