A lazy 1031 exchange is investor shorthand for offsetting the taxable gain on a property sale with depreciation-driven losses from a new investment — rather than deferring that gain through a like-kind exchange.

A qualified intermediary (QI) is an independent third party that holds the proceeds from your relinquished property sale and facilitates your 1031 exchange. Using a QI is the IRS-recognized safe harbor for avoiding constructive receipt of sale proceeds — and, …

A drop and swap is a transaction in which a partnership or LLC distributes tenancy-in-common (TIC) interests in a property to its individual partners before a sale. Once each partner holds a direct TIC interest, they can independently decide whether …

A 1031 exchange can defer significant capital gains tax, but the rules around boot, like-kind property, and qualified intermediary timing can make or break an exchange. Here's what investors need to know before they close.

Beyond the federal 1031 exchange rules, California imposes its own specific compliance rules administered by the Franchise Tax Board (FTB). Key state-specific regulations include the "clawback" provision, which tracks deferred gains on out-of-state replacement properties, and a mandatory 3.33% withholding …

A corporation can do a 1031 exchange. The more important question is whether holding real estate inside a corporation is the right structure before that exchange ever becomes necessary. Entity choice affects not just how the exchange is executed, but …

A 1031 exchange is a tax strategy that allows real estate investors to sell one property and buy another without having to pay capital gains taxes and depreciation recapture on the profits immediately.

A 1031 exchange is a tax-deferral strategy that allows real estate investors to defer capital gains taxes and depreciation recapture when selling business or investment property. By exchanging the property for another like-kind property, as defined by Internal Revenue Code …

Understanding the tax-free threshold is crucial to minimizing tax liability and maximizing the assets you inherit. By being aware of the threshold, you can plan your inheritance, which can also reduce the taxes you owe to the state.

When selling a business or real estate investment property, the prospect of paying capital gains taxes looms large. Grasping the intricacies of 1031 exchanges is crucial for seasoned and new investors alike. A 1031 exchange allows investors to postpone capital …