1. Work with a competent tax professional: 1031 exchanges can be complicated, and thus, it is important to discuss your tax goals with a tax professional before entering into an exchange agreement. Your tax advisor can provide you with the advice you need to determine if an exchange is right for ... Read More »
Why Exchange?
Each investor will have a different reason for participating in an exchange of property. Here are some examples of why investors exchange: - Cash Flow: Exchange bare land which produces no income for improved property that can create cash flow - Business Use: Exchange out of a property for ... Read More »
Common 1031 Exchange Errors – Things Not to Do!
Don’t misinterpret like-kind property When completing a successful exchange, a taxpayer must relinquish and acquire like-kind property. However, many taxpayers misinterpret like-kind property. All too often I hear, “If I exchange a duplex, don’t I have to buy a duplex?” I always respond by ... Read More »