Category Archives: FAQ

"Debt Relief" or "Mortgage Relief" is any net reduction in the amount of liability on the replacement property after the exchange, as compared to the amount of liability on the relinquished property just prior to the exchange. It will be … Continue reading →

Partially tax-deferred exchanges are transactions in which some portion of the realized gain is recognized and some is not (i.e., you will pay some of the taxes due upon sale, but not all). Some examples of such exchanges are: Exchanges … Continue reading →

Yes, the IRS has issued combined transaction reporting rules for a partial installment sale and partial exchange. An installment note can also be handled in one of several fashions to accomplish a “pure” exchange: Option #1- Exchanger can try to … Continue reading →

Yes. Remember this rule of thumb: Fully tax-deferred exchanges are effected when you properly identify and receive like-kind qualifying property of equal or greater value, subject to equal or greater debt, without any actual or constructive receipt of cash or … Continue reading →

Competent legal and/or accounting counsel is always recommended and should always be engaged. Tax laws are continually changing and I.R.C. Section 1031 exchanges are often extremely complex or highly technical, requiring guidance and the answers to interpretive questions best left … Continue reading →

It is important to note that this section ONLY APPLIES if the tax payer had a bona fide intent to enter into a deferred exchange at the beginning of the exchange period. Examples of the most important points are as … Continue reading →