ADVANCED
Articles with advanced
information about how 1031 exchanges work...
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• PREVIEW: A common question I get is whether you can rent an exchange property to a relative. Most typically the client wants to buy a replacement property that they can rent to their son or daughter. The answer is yes you can – provided that you strictly follow two basic rules....
READ: Renting 1031 Exchange Property to a Relative - by
Gary Gorman in The Colorado Real Estate
Journal, 05.01.13
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• As I write, there doesn't seem to be any common ground between the Democrats and the Republicans in Congress. But regardless of whether we go off the cliff or not, taxes are going up next year. Americans seem to favor raising rates on....
READ: Crystal Ball Gazing - 1031 Exchanges in 2013 - by
Gary Gorman in The Colorado Real Estate
Journal, 12.19.12
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• Although mortgage rates are low right now, it's hard for most people to get the type of financing they want when they buy a property. It seems the banks still don’t want to part with their money. The end result may be that you have a serious...
READ: How Seller Financing Will Impact Your 1031 Exchange - by
Gary Gorman in The Colorado Real Estate
Journal, 08.15.12
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• It's called "seller financing," "owner carry" or "contract for deed." Your buyer puts up some cash, but needs you to make up the difference. If you're doing a 1031 exchange, you need to know your options. Otherwise, you might end up holding the tax bill...
READ: How Selling Your Property on a Contract Impacts Your 1031 Exchange - by
Gary Gorman in The Colorado Real Estate
Journal, 07.11.12
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• The intent pundits will applaud this outcome of this court case as proof that "intent" arguments can win the day for them. This view is short-sighted because they overlook the tremendous cost of going to tax court, and the fact that the odds that are stacked against them once they get there...
READ: Recent Tax Court Case Affirms 1031 Exchange Intent - by
Gary Gorman in The Colorado Real Estate
Journal, 06.06.12
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• If I get audited in the future, I have yearly proof that tax was already paid and is not subject to taxation again, and a yearly reminder to myself so that I won't pay the recapture tax twice...
READ: Good Record Keeping is Critical if You Have Boot in a 1031 Exchange Transaction - by
Gary Gorman in The Colorado Real Estate
Journal, 05.02.12
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• Tax law says a 1031 transaction with a related party cannot be used for tax avoidance. So, what is "tax avoidance"? No one knows since the IRS hasn't given us any examples. This article clarifies things a little bit...
READ: Current Related Party Rules for 1031 Exchanges - by
Gary Gorman in The Colorado Real Estate
Journal, 08.17.11
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I• It's not uncommon for a real estate transaction to have two or more parts that are governed by different code sections. The one we see most often is the sale of a property that involves both 1031 investment property and a primary residence...
READ: Bifurcating a 1031 Exchange:
Cutting an exchange transaction into separate parts - by
Gary Gorman in The Colorado Real Estate
Journal, 08.03.11
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• Of course §1031 is a great vehicle for deferring capital gain taxes, but did you know it's also a very powerful estate-planning tool? This article shows you one way of doing this...
READ: Using 1031 Exchanges as Part of Your Estate Plan - by
Gary Gorman in The Colorado Real Estate
Journal, 07.06.11
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• Can you do an exchange on a fix-and-flip property? That controversy comes up from time to time. A recent tax court case again makes clear that properties held for a short period of time are 'held for resale' and not investment...
READ: Another Nail in the 1031 Fix-and-Flip Coffin - by
Gary Gorman in The Colorado Real Estate
Journal, 06.01.11
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• Until now, a debtor's investments in LLCs were considered untouchable.
This comfortable level of protection may soon be gone...
READ: New Court Case Weakens LLC Protections - by
Gary Gorman in The Colorado Real Estate
Journal, 02.16.11
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• What's
going to happen in 2011, and how do you
plan for it? If there isn't agreement
between the House, the Senate and the
White House, tax rates automatically go
up. Can there be some middle ground that
everyone can agree on...?
READ: Consult Your Crystal Ball and Read Your Tea Leaves - by
Gary Gorman in The Colorado Real
Estate Journal, 12.01.10
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• The
hardest concept clients seem to to
grasp is why, if they get money back
in a 1031 exchange, it's taxable. To
explain this, let me use an actual
client situation...
READ:
How Basis and Gain Work in a 1031 Exchange - by
Gary Gorman in The Colorado Real
Estate Journal, 08.18.10
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• One
of the basic rules for holding title
to property in a 1031 exchange is: "how
you hold title to your old property
is how you have to take title to your
new property." But there are exceptions
to this rule
...sort of...
READ:
Using 'Disregarded Entities' in
a 1031 Exchange - by
Gary Gorman in The Colorado Real
Estate Journal, 08.04.10
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• We're
getting a lot more calls these days
from real estate investors wanting
to do reverse exchanges. That's a good
sign for
the real estate market. Read why I
think so, here...
READ:
A Reverse Exchange Primer - by
Gary Gorman in The Colorado Real
Estate Journal, 07.07.10
. . . |
Donna
Fries' radio interview with
Gary Gorman
