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Here you will find the complete IRS provisions: Cardéa - IRS 1031 Provisions
Written by DROdio on February 26th, 2007.
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If you deducted an incorrect amount of depreciation in any year, you may be able to make a correction by filing an amended return for that year. See Filing an Amended Return, next. If you are not allowed to make the correction on an amended return, you may be able to change your accounting method […]
Written by James Brennan on January 21st, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Settlement Q&A and Tax Calculations and General Tax Q&A and Second Homes & Vacation Homes and Reporting Your Exchange and Calc_Q2.
One other item that frequently shows up on closing statements and the list of most frequently asked questions involves seller and buyer credits. Such items do not require a payment, the way an invoiced cost would. When a seller is given a credit by a buyer, it will increase the net purchase price. When a […]
Written by James Brennan on January 20th, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Topics and Settlement Q&A and Form 8824 and 1031 Calc FAQs and Calc_Q5 and Calc_Q6 and Calc_Q8.
Costs that are either recurring or do not specifically relate to the closing. Such costs should not be paid for using exchange proceeds without incurring a tax liability. When selling property, such costs should be paid for “out of pocket”. When buying property, such costs should either be paid for with loan proceeds, if possible, […]
Written by James Brennan on January 20th, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Settlement Q&A and General Tax Q&A and Form 8824 and Reporting Your Exchange and Calc_Q5 and Calc_Q6.
First are costs that are non-recurring and specifically related to the closing. Such costs can generally be paid for using exchange proceeds and will reduce the property’s net sales price for sellers or increase the net purchase price for buyers. A non-inclusive list of such costs includes:
Sales commissions
Title and escrow fees
Recording fees
Transfer Taxes
1031 Exchange Intermediary […]
Written by James Brennan on January 20th, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Settlement Q&A and Section 121 Exemption and Form 8824 and Calc_Q5 and Calc_Q6.
Subdividing property will re-classify the land as “Dealer Property” which is not like-kind. The case on point is Margolis Vs. Comm. 337F2d 1001.
Written by James Brennan on January 20th, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Settlement Q&A and Consolidating or Diversifying? and Reporting Your Exchange and 1031 Calc FAQs and Calc_Q1.
The IRS does not allow extensions for either the 45-day period or the 180-day period.
If the exchangor’s 45th or 180th day falls on a weekend or holiday do I get the benefit of the following business day?
No. The IRS calculates this timeline based on calendar days. There are no extensions given.
Written by James Brennan on January 20th, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Settlement Q&A and Identification in the FIRST 45 days and 1031 Calc FAQs and Calc_Q1 and All the Questions You Were Afraid To Ask About 1031s.
A QI should be highly reputable, experienced, and trustworthy. The QI should also be bonded with adequate insurance coverage because the QI holds large sums of money in trust during the exchange. Unfortunately, the intermediary industry is unregulated in most states. There have been several cases nationwide involving taxpayers who lost all of their money […]
Written by James Brennan on January 20th, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Settlement Q&A and 1031 Calc FAQs and All the Questions You Were Afraid To Ask About 1031s.
This creates several critical problems for the exchange: First, since the taxpayer has the right to change the escrow instructions and withdraw the proceeds, he or she will be considered in constructive receipt of the proceeds. Similarly, in an escrow context, the taxpayer is a principal and the escrow officer is legally deemed to be […]
Written by James Brennan on January 20th, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Settlement Q&A and Calc_Q8 and All the Questions You Were Afraid To Ask About 1031s.
As an individual, you report the income and deductions for rental properties on page 1 of Form 1040, Schedule E, Supplemental Income and Loss. The total income or loss computed on Schedule E carries to Form 1040.
Report the depreciation of rentals on Form 4562: Depreciation and Amortization.
Written by James Brennan on January 20th, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Settlement Q&A and Tax Calculations and General Tax Q&A and Reporting Your Exchange.
I had this question posted to me by Vince Hurteau, a successful realtor in DC:
What are ALL of your fees?
Answer: Our fees are flat at $750 for a standard 1031 exchange. Build-to-Suit exchanges and Reverse Exchanges are significantly more ranging from $3,500 to $25,000 for non-Safe Harbor Reverse Exchanges.
Written by admin on January 19th, 2007.
Read more articles on Web Properties and inside1031.com and CardeaCommercial.com and Settlement Q&A and All the Questions You Were Afraid To Ask About 1031s.