The Political Path to Repeal the 1031 Exchange
Most real estate investors feel strongly that 1031 exchanges remain a target for repeal or limitation. By Todd R. Pajonas, Esq. President Joe Biden’s election has renewed the discussion as to whether 1031 tax deferred exchanges are once again in danger of being repealed or modified to limit its tax benefits. Most supporters of 1031 […]
1031 EXCHANGE UPDATE: TAX RELIEF FOR TEXAS
1031 EXCHANGE UPDATE: TAX RELIEF FOR TEXAS The IRS Issues Disaster Relief For Taxpayers Affected By Severe Winter Storms In Texas By: James T. Walther, Esq., LL.M., General Counsel, Legal 1031 Exchange Services, LLC As you may be aware, the state of Texas was recently declared a FEMA disaster area due to the impact of […]
1031 EXCHANGE UPDATE: The IRS and Treasury Release Final Regulations Defining “Real Property” for purposes of IRC Section 1031 Exchanges
By: James T. Walther, Esq., LL.M.; David J. Feeser, Esq.; Todd R. Pajonas, Esq. If you are an attorney, or accountant, or a commercial real estate professional, you may have heard that the IRS recently issued final regulations defining “real property” for the purpose of IRC §1031 exchanges. This Update is a brief overview into […]
1031 Exchange Insights: Filing an Extension of a Tax Return due date to Preserve your 180-day Exchange Period
IRC Section 1031 requires that taxpayers acquire all replacement property by the earlier of 180 days from the sale of the relinquished property or the Federal tax return due date for the year in which the exchange commenced. Therefore, taxpayers with exchange transactions commencing in the 4th quarter of the calendar year, specifically those starting […]
What Transactional Costs can I Pay with my 1031 Exchange Funds?
By: James T. Walther, Esq., LL.M., General Counsel, and Todd R. Pajonas, Esq., President, Legal 1031 Exchange Services, LLC The answer to this question is “it depends.” For some items, the guidance is pretty clear and for other items, the answer is open to interpretation due to the existence of limited IRS guidance.[i] While this […]
A 1031 Exchange is not a “tax loophole” or a “tax dodge.” It is a tax benefit that helps fuel the economy.
By: James T. Walther, Esq., LL.M. Legal 1031 Exchange Services, LLC Presidential candidate Joe Biden recently announced his proposed tax plan, which seeks to fund a $775 billion child and elder care plan by making several major changes to the Tax Code, including a repeal or limitation on the “1031 exchange” or “like-kind exchange a […]
1031 EXCHANGE UPDATE- IRC 1031 EXCHANGES AND DISASTER RELIEF 2020
The IRS Issues Disaster Releif for Hurricane Laura, California Wildfires, and other recent Disasters By: James T. Walther, Esq., LL.M., General Counsel, Legal 1031 Exchange Services, LLC As we get into late Summer we tend to see increases in natural disasters such as extreme weather events and wildfires, it is important for taxpayers who are […]
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 Updated May 21, 2021 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 […]
Ambiguous 1031 Exchange Extension Notice puts QIs and Exchangers in an awkward position
By David J. Feeser, Esq. and James T. Walther, Esq., LL.M The commercial real estate industry is in uncharted waters due to the impact of the COVID-19 pandemic. The economic impact of this pandemic will potentially be felt for some time. That being said, while the recent IRS guidance regarding the extension of the 1031 […]
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 […]