Sentences with phrase «deferred like»

A tax - deferred like - kind exchange allows you to sell rental or investment property (relinquished property) and purchase more profitable and / or productive rental or investment property (like - kind replacement property) while deferring Federal, and in most cases state, capital gain and depreciation recapture income tax liabilities.

Actual Receipt: Direct access to, or actual possession of, tax - deferred like - kind exchange funds or other property by an investor completing a tax - deferred like - kind exchange.

Exeter 1031 Exchange Services, LLC is pleased to provide the articles, publications, and technical resources on 1031 Tax - Deferred Like - Kind Exchanges list above as a courtesy to our clients and their professional advisors.

Although specific uses for the net proceeds reportedly have not been determined, a portion of these funds are earmarked for a possible Section 1031 tax - deferred like - kind exchange, according to the Taubman release.

For tax - deferred like - kind exchange purposes, an agent includes any employee, attorney, accountant or investment banker or real estate agent or broker that has had an agency relationship with the investor within the two - year period prior to and the two - year period subsequent to the investor's tax - deferred like - kind exchange transaction.

2) We prepare all of the legal documents necessary to structure your 1031 exchange transaction, including the Tax - Deferred Exchange Agreement, the Assignment, Acceptance, Notice and Direction to Convey and any other transactional documents necessary to complete your tax - deferred like - kind exchange transaction.

In a tax - deferred like - kind exchange, an Investor may acquire a tenancy - in - common interest with one or more other investors, as his or her like - kind replacement property.

The Internal Revenue Service issued a revenue procedure on July 20, 2004 regarding the use of DST's for the purchase of fractional interests in real property that would qualify as like - kind replacement property in conjunction with a tax - deferred like - kind exchange transaction.

Partial Exchange: When a tax - deferred like - kind exchange entails receiving cash, excluded property and / or non-like-kind property and / or any net reduction in debt (mortgage relief) on the replacement property as well as an exchange of qualified, like - kind property.

Receipt of the tax - deferred like - kind exchange funds by an investor during the investor's exchange period will disqualify the entire tax - deferred like - kind exchange transaction.

Difficulties sometimes occur in tax - deferred like - kind exchanges when some partners want to enter into an exchange while others want to sell.

1031 of the Internal Revenue Code still allows an investor to postpone a tax bill by arranging for a deferred like - kind exchange.

In the case of a failed or partial tax - deferred like - kind exchange transaction, an Investor may be able to defer his capital gain income tax liability into the following income tax year rather than the income tax year in which the relinquished property closed.

If multiple like - kind replacement properties are involved in the same tax - deferred like - kind exchange transaction and not all of the replacement properties are acquired it results in a partial 1031 exchange.

It is extremely important for Investors to consult with their legal, tax and financial team before entering into any tax - deferred like - kind exchange.

It will depend on whether the Tax - Deferred Exchange Agreement used by the Qualified Intermediary for the Investor's tax - deferred like - kind exchange transaction includes the required language contained in Section 1.1031 of the Department of the Treasury Regulations prohibiting access to the 1031 exchange funds until the following income tax year.

The best way to accomplish this is through the completion of a deferred like - kind exchange (i.e. a Starker exchange where you sell your property first and then reinvest the proceeds).

These tax - deferred like - kind Exchange requirements are easily addressed at the back end of the transaction when the simultaneous tax - deferred like - kind Exchange occurs.

The Investor will sell the relinquished property to the Exchange Accommodation Titleholder in order to complete the simultaneous tax - deferred like - kind Exchange transaction.

Exeter 1031 Exchange Services, LLC will do everything we can to assist you with your tax - deferred like - kind exchange transaction, but we can not provide you with legal, income tax, and / or financial advice or guidance.

Since the Investor has already purchased his like - kind replacement property and completed a simultaneous tax - deferred like - kind Exchange up front, he will not have the opportunity to balance his tax - deferred like - kind Exchange by investing additional equity at the back end when his relinquished property ultimately sells.

The proposed rules and regulations specifically clarified the 45 calendar day identification period and the 180 calendar day exchange period rules, provided guidance on how to deal with actual and constructive receipt issues in the form of safe harbor provisions, reaffirmed that partnership interests do not qualify as like - kind property in a tax - deferred like - kind exchange transaction, and further clarified the related party rules.

In order to defer 100 % of the applicable depreciation recapture and capital gain income tax liabilities, Investors must meet three requirements when structuring tax - deferred like - kind Exchanges: (1) Exchange or trade equal or up in value; and (2) reinvest 100 % of the Investors equity (net cash proceeds from sale of relinquished property); and (3) replace any debt with new debt on the replacement property.

1031 Exchange Clients are responsible for monitoring and complying with their own required tax - deferred like - kind exchange deadlines as outlined in Section 1031 of the Internal Revenue Code and Section 1.1031 of the Treasury Regulations as outlined below:

The Starker family litigation stemmed from two delayed tax - deferred like - kind exchange transactions where T.J. Starker and his son Bruce Starker sold timberland to Crown Zellerback, Inc. in exchange for a contractual promise to acquire and transfer title to properties identified by T.J. Starker and Bruce Starker within five (5) years.

Relinquished properties and like - kind replacement properties that are part of a single like - kind exchange transaction must qualify as like - kind property to each other in order to qualify for tax - deferred like - kind exchange treatment under Section 1031 of the Internal Revenue Code («like - kind exchange»).

You should consult with your advisors before beginning a tax - deferred like - kind exchange.

The long awaited proposed tax - deferred like - kind exchange rules and regulations were issued by the Department of the Treasury effective July 2, 1990.

Once the extensions of time have been filed, Investors must complete their tax - deferred like - kind exchange transaction within the 180 calendar days before they actually file their Federal and, if applicable, state income tax returns.

Exeter 1031 Exchange Services, LLC is always available to assist its clients in navigating through the required tax - deferred like - kind exchange deadlines.

.04 On April 25, 1991, the Treasury Department and the Service promulgated final regulations under Section 1.1031 (k)-1 providing rules for deferred like - kind exchanges under Section 1031 (a)(3).

You should notify your Exeter 1031 Exchange Services, LLC 1031 Exchange Advisor immediately if any of the following circumstances apply to your tax - deferred like - kind exchange transaction:

The act of altering, changing, amending, swapping or back - dating a like - kind replacement property identification form in order to save a tax - deferred like - kind exchange transaction is classifeid as income tax fraud, and Investors should avoid any Qualified Intermediary that engages, permits or suggests any such practice.

The successful completion of a tax - deferred like - kind exchange transaction requires Investors to comply with certain deadlines pursuant to Section 1031 of the Internal Revenue Code, which have been further clarified within Section 1.1031 of the Department of the Treasury Regulations.

Investors will never have more than 180 calendar days to complete their tax - deferred like - kind exchange transaction.

Failure to identify like - kind replacement property (ies) within the 45 calendar day window will result in a failed tax - deferred like - kind exchange transaction, and the subject transaction must be recharacterized as a taxable sale rather than a tax - deferred like - kind exchange.

These changes significantly restricted the tax benefits of owning real estate and catapulted the tax - deferred like - kind exchange into the lime light as being one of the few income tax benefits left for real property Investors.

This fact sheet, the 21st in the Tax Gap series, provides additional guidance to taxpayers regarding the rules and regulations governing deferred like - kind exchanges.

Investors completing a tax - deferred like - kind exchange transaction must identify their potential like - kind replacement property (ies) to their Qualified Intermediary (Exeter 1031 Exchange Services, LLC) no later than midnight of the 45th calendar day following the close of the relinquished property sale transaction.

The term Reverse Exchange is therefore really a misnomer because it actually consists of: (1) a parking transaction where either the replacement property or the relinquished property is acquired and held or parked by the Exchange Accommodation Titleholder; and (2) a simultaneous tax - deferred like - kind Exchange (not a true Reverse Exchange) occurs either at the beginning (Exchange First Structure) or at the end (Exchange Last Structure) of the Reverse Exchange transaction.

The Starker family tax - deferred like - kind exchange tax court decisions established the need for regulations regarding delayed tax - deferred like - kind exchanges and prompted the United States Congress to eventually adopt the 45 calendar day Identification Deadline and the 180 calendar day Exchange Period as part of The Deficit Reduction Act of 1984, which also «codified» or adopted the delayed tax - deferred like - kind exchange provisions that we have today.

The issuance of Revenue Procedure 2000 - 37 gave Investors and Qualified Intermediaries guidelines on how to structure reverse tax - deferred like - kind exchange transactions where the Investor's like - kind replacement property can be acquired before he disposes of his relinquished property.

Investors do not need to be concerned about part (2) above unless the first relinquished property transaction sold and closed within the tax - deferred like - kind exchange transaction closed on or after October 17th and on or before December 31st of any given tax year, which would mean that the 180th calendar day would fall after April 15.

Investors must complete their tax - deferred like - kind exchange transaction, which includes the receipt of title to all of their like - kind replacement properties, no later than the earlier of:

This structure provides the Investor with a great deal more flexibility in planning the acquisition and financing of the like - kind replacement property because the actual tax - deferred like - kind Exchange has not yet occurred.

Fees for Reverse Exchange transactions are higher than fees for forward, delayed tax - deferred like - kind Exchange transactions primarily due to the significantly increased risk that is assumed by the Exchange Accommodation Titleholder (EAT) when acquiring, holding and «parking» legal title to the Investor's relinquished or replacement property.

Identification is not necessary when the relinquished property is parked by the Exchange Accommodation Titleholder because the tax - deferred like - kind Exchange has already been completed at the beginning of the transaction.

Make sure that your lender understands that you are contemplating a Reverse Exchange transaction and not a regular forward tax - deferred like - kind Exchange.

The Starker family's tax - deferred like - kind exchange transactions were structured so that Crown Zellerback would compensate the Starker family with a «growth factor.»

The Internal Revenue Service has placed certain restrictions on Clients» rights to receive, pledge, borrow, or otherwise obtain the benefits from your tax - deferred like - kind exchange funds pursuant to Section 1.1031 (k)- (g) of the Internal Revenue Service Regulations while your funds are being held and safeguarded by your Qualified Intermediary.