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 […]
FLIPPERS, DEALERS, & WHOLESALERS: WHAT IS INVESTMENT INTENT FOR PURPOSES OF A 1031 EXCHANGE?
March 9, 2023 By: Julia Mastrotto, Esq., Counsel IRC 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 to be […]
1031 EXCHANGE NEWS UPDATE: Pennsylvania Conforms its State Tax Code to Federal §1031
By: James T. Walther, Esq., LL.M. General Counsel, Legal 1031 Exchange Services, LLC Updated 1/2/2023 – this law is now effective for 1031 exchanges where property is relinquished in 2023. Summary: Pennsylvania now recognizes 1031 Exchanges for individuals and partnerships. For tax years beginning after December 31, 2022, Pennsylvania will conform its state tax code […]
1031 EXCHANGE UPDATE: HOW TO AVOID A LITTLE-KNOWN TAX SEASON TRAP BY PRESERVING YOUR 180-DAY EXCHANGE PERIOD
IRC Section 1031 requires that exchanging taxpayers acquire all replacement property by the earlier of (i) 180 days from the sale of the relinquished property, or (ii) the Federal tax return due date for the year in which the exchange commenced. As a result, taxpayers with exchange transactions commencing in the 4th quarter of the […]
1031 EXCHANGE UPDATE – TAX RELIEF FOR CALIFORNIA DUE TO SEVERE WINTER STORMS, FLOODING AND MUDSLIDES
February 6, 2023 Beginning December 27, 2022, severe winter storms made landfall, resulting in flooding, landslides and mudslides that severely impacted areas of California. Please note that pursuant to IRS Notice CA-2023-01, a subsequent storm impacted areas of California beginning January 8, 2023. To learn more about relief under CA-2023-01, check out our article here. […]
What is the 3.8% “MEDICARE TAX” or NET INVESTMENT INCOME TAX (“NIIT”)?
2024 Update Many investors selling real estate or other high value investments are often surprised to find out that their tax liability could be subject to an extra 3.8% surtax in addition to the applicable short-term or long-term capital gains tax rates. The Net Investment Income Tax (“NIIT”) or Medicare Tax is a 3.8% surtax […]
1031 EXCHANGE UPDATE – TAX RELIEF FOR AFFECTED AREAS OF ALABAMA & GEORGIA DUE TO SEVERE STORMS, HIGH WINDS, AND TORNADOES
January 30, 2023 Beginning January 12, 2023, a severe storm made landfall and resulted in straight-line winds and tornadoes that severely impacted areas of Alabama and Georgia. Due to the disruption caused by the storm, the IRS issued tax relief pursuant to IRS Notice AL-2023-01, dated January 18, 2023 (updated to include additional counties), and […]
1031 EXCHANGE UPDATE – TAX RELIEF FOR ILLINOIS DUE TO SEVERE STORMS AND FLOODING
January 17, 2023 Occurring between July 25 and 28, 2022, a severe storm accompanied by flooding severely impacted areas of Illinois. Due to the disruption caused by the storm, the IRS issued tax relief pursuant to IRS Notice IL-2022-08, dated November 16, 2022 (the “IRS Notice”), to those who reside or have businesses located in St. […]