1031 Exchange Update: California FTB’s Failure to Withhold Penalties for 1031 Exchange Rescue Transactions/QIs are in Effect as of March 24, 2020

By: James T. Walther, Esq., LL.M., General Counsel Legal 1031 Exchange Services, LLC The California Franchise Tax Board (“FTB”) recently emphasized its position on installment note or installment trust structures used as rescue options for failed or partial 1031 exchanges. Qualified intermediaries (“QIs) and investors should take note of CA FTB Notice 2019-05, September 24,

Read More

It’s a Struggle to Understand the IRS’ Guidance for 1031 Extensions

Unfortunately, this much-needed announcement has been marred by a departure from standard language, causing tax and legal professionals to debate the nature of the relief that the Notice granted. By Todd R. Pajonas, Esq. and Matthew K. Scheriff, CPA The Internal Revenue Service is aware that taxpayers who structure the sale of their real estate

Read More

Eagerly awaiting a Covid-19 extension for 1031 Exchanges

by Todd R. Pajonas, Esq, Matthew K. Scheriff, CPA and James T. Walther, Esq., LL.M. A 1031 exchange is a tax strategy used by real estate investors to defer capital gains tax recognized upon the sale of real estate. In order to successfully complete a 1031 exchange, the taxpayer must purchase business or investment real

Read More

Potential Covid-19 Extension for 1031 Exchanges

For those real estate investors currently involved in a 1031 exchange one of the most pressing questions is “will there be an extension of the 45 day identification period and 180 day period in which to complete their exchange?” The answer is “not yet, but hopefully soon.” There are certain steps which must happen in

Read More

California Selectively Conforms to Changes to IRC Section 1031 Made by the Tax Cuts and Jobs Act, but Still Leaves Opportunity Zones on the Sidelines for Now

James T. Walther, Esq., LL.M. General Counsel Legal 1031 Exchange Services, LLC September 10, 2019 With the recent enactment of AB-91 “Loophole Closure and Small Business and Working Families Tax Relief Act of 2019” California has finally conformed its state tax code, selectively, to several of the changes to the federal tax code made by

Read More

10 Common Misconceptions About 1031 Exchanges

By: James T. Walther, Esq., LL.M. Exchange Director, Legal 1031 Exchange Services, Inc.   What is a 1031 Exchange? Although tax deferred exchanges have been part of the Tax Code in one form or another since 1921, many people are not aware of this powerful and easy to use tax benefit. In general, an I.R.C.

Read More

The PA Legislature Reintroduces Small Business Tax Reform Package

1031 NEWS UPDATE – TRY, TRY AGAIN – THE PA LEGISLATURE REINTRODUCES SMALL BUSINESS TAX REFORM PACKAGE, WHICH SEEKS TO RECOGNIZE IRC §1031 by James T. Walther, Esq. LL.M. This is an update to a previous article “Pennsylvania Still Doesn’t Recognize 1031 Exchanges”, about Pennsylvania’s latest failed attempt to recognize IRC Section 1031 tax deferred

Read More

Investing in Opportunity Zones

INVESTING IN OPPORTUNITY ZONES BACKGROUND, BASICS, AND COMPARISON TO 1031 EXCHANGES by James T. Walther, Esq. LL.M. Introduction: Opportunity Zones (OZs) have frequently been a topic of discussion in the news and in the commercial real estate industry, especially after Amazon’s announcement (now rescinded) that it would expand using a development site in an OZ

Read More

Pennsylvania still doesn’t recognize 1031 Exchanges

By: James T. Walther, Esq., LL.M. Exchange Director, Legal 1031 Exchange Services, Inc. As we begin 2019, Pennsylvania is still the only state that does not fully recognize I.R.C. Section 1031 tax deferred exchanges because it does not follow federal taxation principles for its Personal Income Tax (“PIT”). The Pennsylvania legislature had sought to change

Read More