How to Identify a Replacement Property for a 1031 Exchange

The idea behind 26 U.S. Code § 1031 – “Exchange of Real Property held for Productive Use or Investment” – is that the investor can trade relinquished real estate for properly identified as replacement real estate to benefit from a capital gains tax deferral. 

May 31, 2023

Can You Combine a Reverse and Forward 1031 Exchange?

For many real estate investors, the primary objective of completing a 1031 exchange is to defer capital gains taxes generated from the sale of their investment properties. 

May 30, 2023

Can You Exchange One 1031 Property for Two?

Selling an investment property can bring about many difficult decisions. 

May 29, 2023

What is the Napkin Test?

Legendary California real estate attorney Marvin Starr likely had no idea when he snatched up a paper table napkin during a real estate seminar to jot down some quick 1031 exchange math that he was pioneering the most simple method of determining an exchangor’s financial position in a potential exchange. 

May 27, 2023

What is a 1031 Exchange Addendum, and How Does it Work?

Many 1031 exchange contracts have all the necessary language to complete the exchange. However, there are times when modified or new language must be introduced after the fact. This article will look at a few scenarios where a 1031 exchange addendum is needed.

May 25, 2023

Can You Sell Multiple Properties in a 1031 Exchange?

There is nothing special about selling multiple properties in a 1031 exchange (also called a forward exchange). However, it can be more difficult than a single property exchange. Compared to a single property exchange, there can be more properties and people involved. This means far more to juggle and maintain, all while trying to beat deadlines. Let’s walk through what this type of transaction might look like.

May 24, 2023

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