Liabilities Related to Relinquished Property: Can I Pay Off Secured/Unsecured Debt Through my 1031 Exchange?
Under IRC Section 1031 (b) and related guidance, it is a general principle that proceeds from a sale used in the exchange cannot be used to pay off liabilities that are unrelated to the relinquished property (they do not share a common nexus). Ideally, such liabilities should be secured to the relinquished property, however the […]
August 2023 Disaster Relief Update
Throughout the month of August, the IRS has issued tax relief that can extend/postpone the 45-day and 180-day deadlines applicable to ongoing Section 1031 exchanges for the below-referenced disaster areas. Each Notice provides universal tax relief that extends the deadline to file various individual and business tax returns and to make tax payments for affected […]
July 2023 Disaster Relief Update
Throughout the month of July, the IRS has issued tax relief that can extend/postpone the 45-day and 180-day deadlines applicable to ongoing Section 1031 exchanges for the below-referenced disaster areas. Each Notice provides universal tax relief that extends the deadline to file various individual and business tax returns and to make tax payments for affected […]
May 2023 Disaster Relief Update
Throughout the month of May, the IRS has issued tax relief that can extend/postpone the 45-day and 180-day deadlines applicable to ongoing Section 1031 exchanges for the below-referenced disaster areas. Each Notice provides universal tax relief that extends the deadline to file various individual and business tax returns and to make tax payments for affected […]
Refinancing Before or After your 1031 Exchange
May 11, 2023 By: Julia Mastrotto, Esq., Counsel All too common is the question of refinance in proximity to an IRC Section 1031 exchange. The key takeaway being that a refinance cannot occur as part of a 1031 exchange. It should be noted that generally, a refinance is not a taxable event (subject to exceptions/limitations like […]
April 2023 Disaster Relief Update
Throughout the month of April, the IRS has issued tax relief that can extend/postpone the 45-day and 180-day deadlines applicable to ongoing Section 1031 exchanges for the below-referenced disaster areas. Each Notice provides universal tax relief that extends the deadline to file various individual and business tax returns and to make tax payments for affected […]
1031 Exchange update – Tax relief for Mississippi due to severe storms, straight-line winds and tornadoes
March 28, 2023 From March 24, 2023, to March 25, 2023, severe storms, straight-line winds and tornadoes severely impacted areas of Mississippi. Due to the disruption caused by the storm, the IRS issued tax relief pursuant to IRS Notice MS-2023-02, dated March 27, 2023 (the “IRS Notice”), to those who reside or have businesses located […]
1031 Buyer Beware: Co-Ownership of Real Estate (Fractional TIC Interests) vs. Interests in Business Entities
March 24, 2023 By: Julia Mastrotto, Esq., Counsel Internal Revenue Code Section 1031 solely applies to the exchange of real property, as personal property exchanges are no longer eligible.[1] Many exchangers acquire a tenancy in common (TIC) interest, a coownership arrangement that allows two or more parties, or tenants in common, to share fractional ownership […]
1031 EXCHANGE UPDATE – TAX RELIEF FOR CALIFORNIA DUE TO SEVERE WINTER STORMS, FLOODING AND MUDSLIDES
March 22, 2023 IRS Updated 10/16/23: This news release has been updated to change the filing and payment deadlines from Oct. 16, 2023 to Nov. 16, 2023. The Nov. 16 deadline also applies to the quarterly payroll and excise tax returns normally due on Oct. 31, 2023. Beginning March 9, 2023, a severe winter storm […]
WHAT IS “INVESTMENT INTENT” IN A 1031 EXCHANGE? AND WHEN IS INVESTMENT INTENT MEASURED?
March 17, 2023 By: Julia Mastrotto, Esq., Counsel Internal Revenue Code Section 1031(a) provides that “no gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment if such real property is exchanged solely for real property of like kind which is […]