There is plenty of chatter and hype about investing in Qualified Opportunity Funds (QOF) to defer real estate capital gain. The Qualified Opportunity Zones (QOZ) and Qualified Opportunity Funds (QOF) were created in TCJA legislation a year ago, but there are still many unanswered questions. In many cases, the 1031 exchange remains a better way … [Read more...]
New Article on the use of a Shared Equity Finance Agreement
Mom and Dad can use a 1031 exchange and help the kids buy a new home. We've posted a new Shared Equity Finance Agreement article in our Exchange Library. … [Read more...]
A Great Tax Guide for Landlords
Realty Exchange highly recommends the 15th edition of Every Landlord’s Tax Deduction Guide, written by Stephen Fishman, J.D., and published by NOLO. Get a copy here. Link: https://store.nolo.com/products/every-landlords-tax-deduction-guide-dell.html … [Read more...]
IRS Publishes Proposed Regulations for Opportunity Zones
Qualified Opportunity Funds (QOFs, which invest in Opportunity Zones) are not eligible as replacement real estate in a 1031 exchange. For those with questions about investing in QOFs as an alternative to a 1031 exchange, you can review the proposed IRS regulations at … [Read more...]
Do Landlords Get the New 199A 20% Deduction?
Will individual landlord taxpayers be able to claim a 199A 20% deduction of net rental income? The question begs clarity. At a meeting with the IRS, advocates said proposed Section 199A regulations should clearly state that all rental real estate is a trade or business. Politico has a good article on this issue: … [Read more...]
199A Comments to Treasury
Ed Horan submits 199A comments to Treasury Throughout last year's tax reform process, Realty Exchange was heavily involved as part of an industry team to help save 1031 exchanges for real property. The team spent countless hours walking the halls of the Capitol, making great effort to ensure Congressional members knew the importance of 1031 … [Read more...]
Related Parties
Internal Revenue Code (IRC) Section 1031(f) establishes the special rules for exchanges between related parties. In addition, the IRS published “Revenue Ruling 2002-83” in November 2002, to clarify the purchase by an exchanger of the replacement property from a related party. IRC Section 1031(f)(1)(C) requires that the property received in a … [Read more...]
NAR Summary x
National Association of Realtors ( NAR) has published an excellent summary of the recent tax bill impact on Homeowners and Real Estate professionals. http://narfocus.com/billdatabase/clientfiles/172/19/3062.pdf Worth the read to understand the impact. XX … [Read more...]
Do You Need to File an On-Time Tax Return Extension for your 1031 Exchange?
If you closed on your 1031 exchange relinquished property in the last quarter of 2017 and still have an active 1031 exchange you may want to file an on-time tax return extension. The IRS 1031 regulations say: “The exchange period begins on the date the taxpayer transfers the relinquished property and ends at midnight on the earlier of the 180th … [Read more...]
Receiving 1031 Escrow Funds in Following Year
The IRS 1031 regulation (§1.1031(k)-1(j)) provides that if an exchanger receives 1031 escrow funds from the qualified intermediary at the end of the exchange, or if the exchanger had a bona fide intent to do an exchange but does not complete the exchange by receiving a replacement property, then the gain on cash received will be reported for the … [Read more...]
