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 […]
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 […]
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 […]
California Conforms Selectively to IRC Section 1031 after the TCJA, but does not to Conform to Opportunity Zones
James T. Walther, Esq., LL.M. General Counsel Legal 1031 Exchange Services, LLC September 10, 2019, Updated January 2025 With the enactment of AB-91 “Loophole Closure and Small Business and Working Families Tax Relief Act of 2019” in the fall of 2019, California finally conformed its state tax code, to several of the changes to the […]
10 Common Misconceptions About 1031 Exchanges
By: James T. Walther, Esq., LL.M. Exchange Director, Legal 1031 Exchange Services, LLC 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. §1031 […]
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. March 14, 2019 **UPDATE: In July 2022, the Pennsylvania Legislature enacted HB 1342, a budget bill that included sweeping tax reform legislation. A provision of the Bill conforms […]
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 […]
Pennsylvania still doesn’t recognize 1031 Exchanges
By: James T. Walther, Esq., LL.M.Exchange Director, Legal 1031 Exchange Services, Inc.January 27, 2019 **UPDATE: In July 2022, the Pennsylvania Legislature enacted HB 1342, a budget bill that included sweeping tax reform legislation. A provision of the Bill conforms the state’s treatment of like-like exchanges with Section 1031 of the Federal Internal Revenue Code. Previously, state personal […]
1031 Exchanges and the Foreign Investment in Real Property Tax Act
A 1031 exchange is available to foreign sellers of real property held for productive use in a trade or business, or held for investment purposes, however, the foreign status of the person or entity selling the real property can cause some extra complications which must be addressed. The Foreign Investment in Real Property Act (FIRPTA) […]