Lucas Taylor's (lucastaylor) Blog

Accommodators it is Real Estate Exchange Services, Inc.'s responsibility to counsel with the exchanger, structure the exchange, prepare the documentation, coordinate the closing (for the exchange portion of the transaction) and maintain preparation for IRS audit. This is all I have on 1031 Tax Ex...

Remember! Exchanges must be reported in the tax year that the relinquished property was closed, regardless of the tax year the acquisition property was closed. The Internal Revenue Code Section 1031 is only one page in the total code, however the Rules and Regulations are more than 65 pages with ...

Don't miss the identification period (45 days) or the closing date (180 days). A reputable Qualified Intermediary will not act on back dated information or late identifications, and the IRS is unforgiving on such matters. Do contact Real Estate Exchange Services regarding trusts, corporations, pa...

Don't plan to sell and invest the funds in property you already own. Funds applied toward property already owned are considered "Goods and Services", not "Like Kind" properties. Don't change the manner of holding title during the exchange, or dissolve partnerships. A change in the exchanger's leg...

Do remember these basic rules. To qualify for a complete tax deferral use all proceeds from the relinquished property to purchase the replacement property. Make sure the debt on the replacement property is equal to or greater than the debt on the relinquished property. An exception occurs when a ...

Do attempt to sell before you purchase. Occasionally exchangers find the ideal replacement property before the relinquished property is sold. In this situation a "Reverse Exchange" may be necessary. I am happy to discuss Reverse, Build To Suit, and Improvement Exchanges. You can always e-mail at ...

DO'S AND DON'TS of 1031 Tax Deferred Exchanges Do plan in advance for the exchange. The Qualified Intermediary cannot have a fiduciary relationship with the exchanger; therefore the QI cannot give legal or tax advice. The QI does consult with the exchanger, as well as the exchanger's CPA, account...

What qualifies as "Like Kind" Property?You can exchange any Real Estate investment for any other type of Real Estate investment - for example, vacant land can be exchanged for a warehouse, an office building for an apartment complex, or a vacation home, an orange grove, a golf course, horse ranch...

Why would I want to be involved in an Exchange?Do you own "management intensive" Real Estate? Or perhaps you own property you purchased or inherited years ago and would prefer another property. You have probably realized good returns on investment that will otherwise be lost to the IRS. The sale ...

How does an Exchange workAn Exchange is usually a 3 way Exchange in which an intermediary is used to facilitate the transaction. Four things ordinarily occur in an exchange: The seller sells the relinquished property. At closing the sale proceeds go to a Qualified Intermediary where the funds are...