Recent Court Case – Gerhardt v. Commissioner

by Josie Corrado | Jan 3, 2024 | Realty Exchange Corporation

Gerhardt et al., 180 TC 9 (2023) is a tax court case that has caught our attention and may be of some interest to you as well. The Gerhardt’s completed a 1031 exchange of an Iowa farm with hog buildings for rental real estate in Cape Coral, FL. An IRS audit discovered...

What Properties Qualify for a 1031 Exchange?

by Josie Corrado | Aug 4, 2023 | Realty Exchange Corporation

A 1031 Exchange, also known as a “like-kind” exchange, allows individuals to defer capital gains taxes on the sale of investment or business property by reinvesting the proceeds into another qualifying “like-kind” property. “Like-kind” refers to the use...

Understanding the Identification Rules of a 1031 Exchange

by Josie Corrado | Jul 13, 2023 | Realty Exchange Corporation

Following all rules and regulations of a 1031 Exchange is critical to achieving deferral of capital gains taxes on the sale of an investment property. Missing a step, or completing it incorrectly, may give the IRS reason to challenge an Exchange transaction. A...

The basics of what a 1031 “like-kind” exchange is and how it works:

by Josie Corrado | Jul 13, 2023 | Realty Exchange Corporation

A 1031 Exchange, also known as a “like-kind exchange,” is a mechanism for investors to defer paying taxes on the sale of investment or business property by exchanging investment property for different investment property. A 1031 Exchange can be an...

Replacing your investment: Buying into REITs does not qualify for a 1031 exchange but DSTs do.

by Josie Corrado | Jul 13, 2023 | Realty Exchange Corporation

Many people have heard of REITs – Real Estate Investment Trusts which are shares of a larger portfolio.  However, in a 1031 exchange, you must own real property as your replacement; but in a REIT, you are purchasing a share of an entity which is not the same thing....