Fremont Real Estate and Beyond

“Like-kind” means I must exchange the same type of property, such as an apartment building, for another apartment building.   FALSE A 1031 Exchange means that the sale and the purchase have to happen at the same time. In other words, the seller has to find someone willing to swap properties. FALSE My attorney or CPA can handle the exchange for me as my Qualified Intermediary. FALSE To do a 1031 Exchange I just need to file a form with the IRS with my tax return and “roll over” the proceeds into a new investment.  FALSE I can only defer my capital gains tax via a 1031 Exchange.  FALSE All of the funds from the sale of the relinquished property must be reinvested.   NOT NECESSARILY You must replace the debt that you had on the relinquished property with at least the same amount of debt on the replacement property.  FALSE Opportunity Zone Funds are another alternative to defer my taxes.  POSSIBLY When I sell my personal residence I need to set it up...

As a Realtor, it's difficult to watch this.  I have a fiduciary duty to my clients to help them buy and sell homes, not give legal advice on how to interpret a loophole in a law.

This information was from my 1031 Exchange Specialist.  If you have any questions, don't hesitate to contact me! The Tax Cut and Jobs Act was signed into law on December 22, 2017, and took effect on January 1, 2018. It is a complex modification to the Internal Revenue Code that will take businesses and individuals some time to fully understand, notwithstanding that it became effective just nine days after the President’s signature. The new law retains Section 1031 for real estate exchanges. However, Section 1031 may no longer be utilized to defer taxes for transactions involving  personal property . Real estate exchanges  are subject to the same rules and regulations as under previous law. The 45 day identification and 180 day exchange periods remain unchanged, as does the role of the Qualified Intermediary. All real estate in the United States, improved or unimproved, also remains like-kind to all other domestic real estate. Foreign real estate continues t...

One of my 1031 Exchange Specialists sent me this and I thought I would share-- Revenue Procedure 2007-56 permits extension of IRC §1031 exchange deadlines upon issuance of an IRS Notice or other guidance permitting relief to taxpayers due to Federally declared disasters. Note that an IRS Notice of a Federally declared disaster is different from a FEMA disaster declaration, and the extensions are not available until the IRS publishes its Notice granting relief which specifically references Revenue Procedure 2007-56. Regarding the California wild fires, the IRS has issued a disaster relief notice relating to Orange, Solano, Butte, Lake, Mendocino, Napa, Nevada, Sonoma, and Yuba Counties in California extending deadlines as a result of the wildfires that began on October 8, 2017. The notice extends deadlines falling on or after 10/8/2017 and on or before  1/31/2018  for 120 days or until  1/31/2018  (whichever is later). To be eligible for the extension the rel...