News & Analysis as of

Real Estate Investments Section 1031 Exchange

Whitman Legal Solutions, LLC

Real Estate’s Role In Building Generational Wealth

The most basic real estate investment is a home; for many people, their home is their largest single asset. Since real estate historically has increased in value over time, buying a home can be a way to grow wealth while also...more

Woods Rogers

Following the Government’s Playbook: Tax Incentives for CRE Investments 

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Investing in commercial real estate can offer various tax incentives that can help investors reduce their tax liability and enhance the overall profitability of their investments. Below is a non-exhaustive summary of key tax...more

Obermayer Rebmann Maxwell & Hippel LLP

Reverse Like-Kind/1031 Exchange (Part 2)

A reverse like-kind exchange is just that, a like-kind exchange done in reverse. In a typical like-kind exchange, also known as a forward exchange, a property owner sells a property and uses the proceeds to buy a replacement...more

Greenberg Glusker LLP

Los Angeles "Mansion Tax" - Measure ULA, Its Impact on Property Owners, & Refunds

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In November 2022, Measure ULA, commonly known as the "Mansion Tax," was passed into law by the City of Los Angeles voters. This tax applies to all categories of real estate, including commercial, industrial, and residential...more

Tonkon Torp LLP

1031 Exchange Deadlines Extended for Disaster Relief

Tonkon Torp LLP on

For the unfamiliar, a 1031 Tax Deferred Exchange is a key mechanism for taxpayers to maximize the sale of business and investment properties. For any current or aspiring real estate investor, this tool—found in Section 1031...more

Greenberg Glusker LLP

What do real estate companies and executives need to do to prepare for 2023 and the expected economic slowdown?

Greenberg Glusker LLP on

A few of Greenberg Glusker Real Estate Partners answer a key outlook question: What do real estate developers, investors, lenders, owners, and operators need to do to prepare for 2023 and the expected economic slowdown?...more

Tucker Arensberg, P.C.

PA Welcomes 1031 Tax Deferred Exchanges

Tucker Arensberg, P.C. on

Many real estate investors in Pennsylvania have had an unpleasant surprise when they learn that the Commonwealth has never recognized the 1031 Tax deferred exchanges for Pennsylvania income tax purposes. After years of...more

Allen Matkins

Real Estate Partnerships and Section 1031 Exchanges

Allen Matkins on

Allen Matkins partner Jared Kassan participated on a panel earlier this year to discuss legal issues surrounding partnerships and 1031 exchanges. The panel began by discussing the traditional “drop and swap” strategy with its...more

Tucker Arensberg, P.C.

1031 Tax Deferred Exchanges Still Alive

Commercial real estate professionals and investors spent much of 2021 worrying about the continued availability of 1031 tax deferred exchanges for investment real estate. There were a number of proposals floating around...more

Whitman Legal Solutions, LLC

Management of an “Accidental” Tenancy-in-Common

When it comes to tenant-in-common real estate (TICs), there are professionally-managed TICs assembled by a sponsor and sold to investors, usually to facilitate section 1031 exchanges. These TICs include a tenant-in-common...more

Whitman Legal Solutions, LLC

Evaluating Real Estate Investments -- Cash-on-Cash Return

Like music theorists, real estate investors also have methods for describing how to value a property. At the most fundamental level, real estate investors are concerned about how much cash they need to invest the property...more

Whitman Legal Solutions, LLC

Re-Evaluating Real Estate Dispositions Under the Biden Tax Plan

How Real Estate Investment is Like Buying Violins - Real estate investors also frequently gradually increase in size and price of their assets. A real estate investor might start small with a single duplex. When they sell...more

Gray Reed

IRS Issues New Rules for Gain Deferral in Business Exchanges of Real Property

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Even if you are not a tax professional, many people have heard of a 1031 exchange or like-kind exchange. This tax deferral provision has been a permanent part of the Internal Revenue Code for a long time. Usually, if a...more

Whitman Legal Solutions, LLC

And Then There Were Four. . . Deadly Sins for Delaware Statutory Trusts

In 2004, the Internal Revenue Service (IRS) created a list of “seven deadly sins” for Delaware Statutory Trusts (DSTs) in Revenue Ruling 2004-86 (Rev. Rul. 2004-86). The revenue ruling describes how a DST holding only real...more

Greenberg Glusker LLP

IRS Extends Deadlines for IRC §1031 Exchange Transactions and Qualified Opportunity Fund Investments

Greenberg Glusker LLP on

On April 9, 2020, the IRS issued Notice 2020-23 providing sweeping tax filing and tax payment deferral until July 15, 2020. This relief includes extensions of the 45- and 180-day deadlines for IRC §1031 exchange transactions...more

Allen Matkins

COVID-19 Extensions for Section 1031 Exchanges and Opportunity Zones

Allen Matkins on

Due to COVID-19, certain deadlines have been extended for Section 1031 exchanges and Opportunity Zone Funds. SECTION 1031 EXCHANGES - IRS Notice 2020-23 (the Notice) has extended two deadlines for Section 1031 exchanges....more

Allen Matkins

California Office of Tax Appeals Upholds Taxpayer Friendly "Drop and Swap" Case

Allen Matkins on

On January 28, 2020, the California Office of Tax Appeals (OTA) denied the California Franchise Tax Board’s (FTB) request to rehear In the Matter of the Appeal of Sharon Mitchell (OTA Case No. 18011715). This decision may...more

Dickinson Wright

An Alternative to 1031 Exchanges

Dickinson Wright on

IRC § 1400Z-2, under The Tax Cuts and Jobs Act of 2017, established an investment program designed to provide preferential tax treatment for investment in developments located within certain designated economically distressed...more

Whitman Legal Solutions, LLC

Leaving a String Quartet or Tenant-in-Common Real Estate Investment

The Cleveland Quartet musicians had the luxury of selecting the time when they wanted to disband. They also likely didn’t have to think about tax consequences when they disbanded.   However, for individuals who jointly...more

Tucker Arensberg, P.C.

Real Estate and Taxes

Tucker Arensberg, P.C. on

For a lot of us, the first income tax year under the Tax Cuts and Jobs Act of 2017 is in the rearview mirror.  Now is the time for you commercial real estate owners and investors to sit down and figure out how you utilized...more

Gray Reed

The Tax Cuts And Jobs Act Offers New Tax Break For Real Estate: A Look At Qualified Opportunity Funds

Gray Reed on

On December 22, 2017, Congress enacted the Tax Cuts and Jobs Act (the Act) which made numerous changes to the Internal Revenue Code (the Code) and incentivized certain investments in qualified opportunity zones. The Act...more

Carlton Fields

Qualified Opportunity Zones vs. 1031

Carlton Fields on

For years, Code § 1031 has been a popular way to defer taxation on the sale of capital gain assets. However, Code § 1031 has significant requirements, including complex timing and identification requirements and a requirement...more

Kramer Levin Naftalis & Frankel LLP

A Qualified Opportunity Fund or a 1031 Exchange? Timing Is Key

The 2017 Tax Cuts and Jobs Act created new tax incentives for investing in the U.S. Among these is an opportunity to defer capital gains tax by reinvesting such gains in qualified opportunity funds (QOFs). ...more

Miles & Stockbridge P.C.

Say “Hello” to the Opportunity Zone Program, and “Goodbye” to Capital Gains Taxes

Miles & Stockbridge P.C. on

The U.S. Department of Treasury (“Treasury”) is expected to issue regulations providing administrative rules and guidance to clarify the operation and application of the Opportunity Zone program (the “OZP”); such regulations...more

Whitman Legal Solutions, LLC

Riding the Ferris Wheel and Planning an Exit Strategy for a Tenant-in-Common Investment

During the 2000’s, many real estate investors diversified their Section 1031 exchange funds by investing in tenant-in-common real estate securities. In recent years, some tenant-in-common (TIC) real estate investors have...more

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