ADVANCED

Articles with advanced information about how 1031 exchanges work...

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• NEW: 11.05.08 - I’m amazed that more of my clients don’t have cost segregation studies done on their properties. If you are one of the vast majority of property owners who’ve never heard of a cost seg study you should take a look at this great tax benefit.....

Cost Segregation Studies and 1031 Exchanges - by Gary Gorman for The Colorado Real Estate Journal, 11.05.08

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• NEW: 10.15.08 - Say Fred and Sue fail to identify replacement properties before their deadline: when is their gain taxable? When they sell or when they receive their proceeds? The correct answer is whichever year they want. Let me explain....

Using 1031 Exchanges to Shift Gains Between Tax Years - by Gary Gorman for The Colorado Real Estate Journal, 10.15.08

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• NEW: 09.17.08 - In this current climate of lender uncertainty, we’re getting a lot of questions about “owner carry” notes and how they impact a 1031 exchange. Whether you call it seller financing, contract for deed or....

How Owner Carry Notes Impact 1031 Exchanges - by Gary Gorman for The Colorado Real Estate Journal, 09.17.08

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• 1031 exchanges can fail for an assortment of reasons. If yours looks like it's going to fail, there may still be hope! Read this article to learn how 1031 Exchange Experts help their clients in this situation....

Saving A Failed Exchange - by Gary Gorman for The Colorado Real Estate Journal, 08.20.08

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• Should I sell or should I exchange? I'd do one if Obama wins, but the other if McCain wins. But by the time I know who wins, it's too late to decide! There's a simple way to hedge your bets in this real estate tax conundrum....

UNCERTAIN TIMES: Planning Your Real Estate Tax Alternatives - by Gary Gorman for The Colorado Real Estate Journal, 07.16.08

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• It seems that every time I turn around, I hear the term “short sales” in connection with real estate. I hear talk of them in the locker room at the gym; I read about them in the newspaper, and I see them on the Six O’clock News. Since short sales are the big topic of....

Short Sales and 1031 Exchanges - by Gary Gorman for The Colorado Real Estate Journal, 06.18.08

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• What intermediary would be so foolish as to invest in enhanced money market funds? Unfortunately, many have--and have lost because they didn't know the difference....

Where's Your Commingled Exchange Account Invested? - by Gary Gorman for The Colorado Real Estate Journal, 05.21.08

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• The IRS has just issued a new ruling for those who wish to 1031 exchange a vacation home, but it will certainly create more controversy than it settles....

IRS Issues Vacation Home Ruling - by Gary Gorman for The Colorado Real Estate Journal, 03.19.08

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• The Treasury Inspector General chided the IRS in 2007 for exercising very little oversight over the exchange process. So all that is about to change....

IRS (and States) Target More Audits Of 1031 Exchanges - by Gary Gorman for Realty Times, 02.12.08

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• Ever wonder if investment gurus follow their own advice? Gary Gorman, owner of 1031 Exchange Experts, LLC, explains how HE treats his personal investment property for a future 1031....

How I Handle My Vacation Home So That I Can Do A 1031 Exchange - by Gary Gorman for Realty Times, 02.04.08

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• Security is the big issue for investors doing 1031 exchanges. All the bad things in the news lately happened with commingled exchange accounts....

Security of Funds: One of the Biggest Issues Facing 1031 Exchanges - by Gary Gorman for Citywide Exchange Services in the Colorado Real Estate Journal, 12.05.07

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• If your only shot at a 1031 exchange is a drop-and-swap, there are some things that you really must do to lessen the chance that the IRS will disallow your exchange...

“Drop-and-swap” Problems with 1031 Exchanges - by Gary Gorman in the Colorado Real Estate Journal, 11.28.07

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• Most people seem to miss (or perhaps simply don’t understand) that Section 1031 is a “form driven” code section. This means you must do exactly what the code section requires. In other words, you must dot the i’s and cross the t’s...

1031 Exchanges Targeted for more audits by IRS and states - by Gary Gorman in the Colorado Real Estate Journal, 11.07.07

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• For years I’ve been writing articles, warning about the potential problems inherent in commingling 1031 exchange funds. Now after these latest problems, you’d think that taxpayers would finally get it and be concerned about their money...

Beware more than ever about your exchange intermediary - by Gary Gorman in the Colorado Real Estate Journal, 10.03.07

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• With all the high-profile problems of various intermediaries in recent years, what's next? Some states are taking action; others are taking cues. Here are a few predictions about what we might expect...

THE FUTURE of 1031 Exchanges - by Gary Gorman in the Colorado Real Estate Journal, 08.15.07

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• Likeablity may be a good reason to choose a QI, but is it good enough? Will it protect your 1031 exchange...?”

Con Artist? or Good Guy in Trouble? Either way, the money’s gone - by Gary Gorman and James Schuler in the Colorado Real Estate Journal, 06.06.07

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• The May 28, 2007 edition of Denver Business Journal had an interesting story about the new scrutiny of the 1031 industry in light of recent QI defalcations. If you are a Denver Business Journal subscriber, you can read this article. If you are not a subscriber, you can purchase the article here:

Once-obscure 1031 exchanges now under spotlight - by Renee McGraw, in Denver Business Journal, 05.28.07

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• A popular tax-deferral trick for real-estate investors is facing scrutiny as key middlemen in the strategy run into financial trouble. If you are a Wall Street Journal subscriber, you can read this article online. If you are not a subscriber, you can purchase the article here:

Tax Strategy For Real Estate Hits Rocky Turf - by Peter Lattman and Kemba Dunham, in Wall Street Journal, 05.26.07

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• Gorman said 95 percent of qualified intermediaries commingle funds, mainly in order to collect interest from their clients’ money, which creates huge problems. “...it’s virtually impossible to figure out who has what slice of that pot,” he said.

Daniel's alleged fraud common in unregulated industry - by Nicole Formosa, in Summit Daily News, 05.10.07

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•One of the ongoing controversies about TICs is whether they are real estate or a security. Which license do you need to sell them – a real estate license or a security license...?”

TICs Sold in Colorado are Securities - by Gary Gorman, in the Colorado Real Estate Journal, 05.02.07

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• The April 23, 2007 edition of Forbes Magazine released an interesting story that illustrates the importance of choosing reputable QIs. If you are a Forbes subscriber, you can read this article. If you are not a subscriber, you can purchase the article here:

Other People's Money - by Peter C. Beller, in Forbes Magazine, 04.23.07

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• This is a real cause for concern: this is the first time I've seen the IRS challenge a state's right to define for themselves what 'real estate' is for the purposes of a 1031 exchange....

IRS Challenges State's Definition of Real Estate in a 1031 Exchange - by Gary Gorman, in the Colorado Real Estate Journal, 04.07.07

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• How can 1031 exchange company management pay for an exec jet, $3000 hotel rooms, $1000 nightly meals, expensive mansions and a Mercedes for their former investment manager? Simple: Use clients’ money. The FBI is now involved....

Disqualified Intermediaries - When 1031 exchanges go horribly wrong - by Andrew Waite, in Personal Real Estate Investor Magazine, 03.26.07

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• Fred & Sue lived in a home for five years until they moved. Unable to sell, they rented it for two years, and now the tenant wants to buy it. Since they meet the requirements of both code sections, which option should Fred and Sue take?

Using Section 1031 when selling a personal residence - by Gary Gorman, in the Colorado Real Estate Journal, 03.21.07

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•Section 1031 requires the use of a Qualified Intermediary only if you cannot sell your Old Property and buy your New in a simultaneous closing. A simultaneous closing is easy if you are trading properties with your buyer...

Simultaneous Closings Can Save You 1031 Exchange Fees - by Gary Gorman, in the Arizona Journal of Real Estate and Business, 03.07

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• If you have control over a transaction the IRS could view your transaction as a violation...

Narrow Deviation Allowed in 1031 title holding requirement - by Gary Gorman, in Colorado Real Estate Journal, 02.21.07

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	Donna Fries' radio interview with Gary Gorman was the most informative radio program on real estate investing I have ever heard. Gus Pyroulis Real Estate Investor Panama City, Florida

BASIC

Articles  and videos with basic information about how 1031 exchanges work...

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• While many real estate investors are learning that a one-size-fits-all tax-strategy doesn't exist, The Wall Street Journal's Arden Dale asks Gary Gorman what strategies are in the cue as we approach the 2008 election season....

To Defer Or Not To Defer . . . Journal Observes Shift in 1031 Strategy - by James Schuler, 1031 Exchange Experts, LLC, 03.18.08

• At the offices of the 1031 Exchange Experts, it astonishes us each time we hear a potential client choose to go with another company because of cheaper fees. Arizona’s KTAR.com just broke a story of a 1031 exchange husband and wife team that, if convicted, could face a combined 82 years in prison....

KTAR.com Reports NEW Intermediary Defalcation - by James Schuler, 1031 Exchange Experts, LLC, 02.02.08

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1031 Exchanges on Personal Property - 11.15.06

The Reverse Exchange -- A Useful Tool - 08.04