TEE-Shots Newsletter

Tue
07
Aug
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Seller financing can make 1031 taxable UNLESS...

If the buyer of your property wants you to carry financing on the sale, the owner carry note will be taxable in a 1031 exchange unless you read this article first.

Tue
26
Jun
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Sellers helping buyers could impact exchange...

'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.

Sun
06
May
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Tax Court Affirms 1031 "Intent..."

Section 1031 says you have to hold both your old and new properties with an investment intent, but it doesn't define what investment intent is. We, like most 1031 advisors, use the year-and-a-day holding period as a benchmark for defining investment intent. But there are many investors who are willing to risk a shorter holding period.

The IRS will attack these shorter holding periods, and they almost always win. But if you would like to read about taxpayers who won an eight-month holding period case, visit 1031Articles.com for the full story.

Mon
02
Apr
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Don't Pay Tax Twice – Record Your "Boots"

"Boot" is what the IRS calls the taxable part of a 1031 exchange. If you have boot, whether because you bought down, or you took cash out of an exchange, you will very likely pay tax twice, unless you keep a record of the fact that you've already paid the tax.

Thu
10
Nov
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Using 1031 Exchanges to Shift Gains Between Tax Years

As we start to wind down towards the end of the year, now is a good time to point out that 1031 exchanges are a great vehicle to use in shifting gain between two tax years.

Thu
22
Sep
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Beware of Gaming Related Party Rules

Because section 1031 law is vague when it comes to exchanging with a related party, some investors have been tempted to fudge the rules. But why risk it? There is some leeway that allows you to complete this kind of transaction without stepping into danger.

Thu
04
Aug
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Bifurcation: the best of both worlds

Some real estate transactions benefit from section 1031 of the tax code because it's used in a business. Others properties benefit from the section 121 exclusion because it exempts gain on the sale of their personal residence. Still others benefit from neither, but you might be sitting on property that maximizes the benefits of … BOTH!

Fri
04
Mar
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LLCs may not offer the protection it used to....

If you thought your property was protected because it’s in an LLC, think again. A recent Florida Supreme Court ruling substantially weakens the protection offered by single member LLCs--even those located outside of Florida.

If you, your friends or clients hold property in LLCs, this newest article is a must-read:

New Court Case Weakens LLC Protections
A recent Florida Supreme Court decision has potentially weakened the protection offered real estate investors by Limited Liability Companies (or "LLCs")....

The 1031 Experts
866-694-0204

Thu
26
Aug
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Using ‘Disregarded Entities’ in a 1031 Exchange

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.”

Mon
10
May
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IRS Provides Relief to Victims of 1031 Intermediary Theft

In the past several years there have been several instances where Colorado 1031 intermediaries either failed or were unable to return the funds they held for their clients.

This had a double-catastrophic impact on the victims because not only did they lose their funds, but they also owed tax on the sale. The IRS has just released a ruling that will help with some of their pain--they can now spread the gain over any cash they recover from the theft.

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