1031 Deadlines and the potential impact of COVID-19
March 13, 2020 This week, we have seen an increased number of inquiries regarding the effect of the Coronavirus (COVID-19) outbreak on the strict deadlines (45-day identification and 180-day exchange period) for a 1031 exchange. Currently, we are not aware of any extensions of the exchange deadlines and those currently conducting an exchange should plan […]
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 […]
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 […]
Filing an Extension 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, may have less […]
Filing an Extension 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, may have less […]
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) […]
IRC 1031 Exchanges and Disaster Relief
With 2018 hurricane season upon us, it is important for exchangers to understand the effects of Federally declared disasters, like Hurricanes Florence and Michael, on the strict deadlines for completing a 1031exchange. For delayed exchanges, the 1031 rules set two time periods for a total deadline of 180 calendar days to close escrow on replacement […]