Law & Accounting Offices of Stanley F. Bronstein
Scottsdale, AZ 85260
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1031 Tax Deferred Exchanges can be extremely complex.
They are sometimes referred to as like kind exchanges. You need to have both a knowledgable attorney and a knowledgable CPA on your side to make sure comply with the strict IRS rules and regulations. Knowledgable professionals can also refer you to experience 1031 intermediaries who will save you time and money by charging you smaller fees.
We have some audio materials on the subject you can listen to online if you would like more information on 1031 tax deferred exchanges. Click here to listen.
There are four (4) basic types of 1031 Exchanges that require the use of 1031 exchange intermediaries. They are:
- Delayed exchanges (these are "normal" 1031 tax deferred exchanges)
- Reverse exchanges
- Improvement exchanges
- Personal property exchanges
Reverse exchanges and improvement exchanges can be extremely complex and should never be attempted alone.
Some common 1031 tax deferred exchange issues are:
- What is like-kind property ?
- How much do you need to reinvest to get full tax deferral ?
- How do you properly identify replacement properties within the IRS required 45 day time period ?
- How should you take title to the property ?
- Is there a way to take title in a LLC even if you previously held the relinquished property in your personal name (sometimes there is) ?
- What needs to be done to close on the purchase of the replacement property within the IRS required 180 day time period ?
- What is I want to put together groups of investors to purchase one larger property, all of who want to do a 1031 exchange (consider a Tenancy in Common ( TIC ) arrangement)
- Does your present CPA know how to fill out the complex IRS form 8824 ?
1031 exchanges can be great, but they can be full of twists, turns and potential pitfalls if you, your attorney and/or your CPA are not experienced in this area.