Tag: Tax Mitigation
Tax Mitigation Playbook: 1031 Replacement Rules to Know
The 3-Property Rule The 3-property rule states that the replacement property identification during the initial 45 days of the exchange can be made for up to three properties regardless of their total value. After relinquishing their initial property, the taxpayer
Tax Mitigation Playbook: What is “Boot” in a 1031 Exchange?
The term boot is commonly used when discussing the tax consequences of an exchange. However, the term “boot” is not used in the Internal Revenue Code or the Regulations. Which is a source of confusion. The “Boot” received is the
Tax Mitigation Playbook: What is a 1031 Exchange?
1031 exchange is one of the most popular tax strategies available when selling and buying real estate “held for productive use in a trade or business or investment”. It allows the owner of a property to exchange one asset for another. Our
1031 Fee Structure
Asset Based Fees Low High Fee $0.00 $500,000.00 $1,500 $500,000.01 $1,000,000.00 $2,000 $1,000,000.01 $3,000,000.00 $2,500 $3,000,000.01 and up $3,000 Additional Service Fees Event Fee Replacement Properties $350/per acquired Back-to-Back Closings $250 Rush Fee (inside 48 Hours) $500 Wire Fee $35
Tax Mitigation Playbook: Who can use 1031 Exchanges?
Section 1031 of the tax code allows property owners to defer taxes on the sale of their real estate held for business or investment purposes. At InSight, we use this for several strategic and preference-based reasons for clients (See What
Tax Mitigation Playbook: The Basic’s of a 1031
45 Days You have 45 days after the sale of your relinquished property to identify your replacement property(ies). Identification of replacement properties must be unambiguous, using a legal description or physical address. It must be in writing, dated, signed, and
Tax Mitigation Playbook: Does a vacation home qualify for a 1031 exchange?
One of the most common questions asked is whether or not a vacation property qualifies for a 1031 exchange. There are three basic rules for including a vacation home in a 1031 exchange that was introduced by the IRS in
Mastering Reverse 1031 Exchanges: Unlocking Opportunities When Timing Matters Most
Reverse 1031 Exchange Rules Under IRS rules, Internal Revenue Code Section 1031 states that “no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such
Tax Mitigation Playbook: 1031 Replacement Property Rules
Like-kind property is defined according to its nature or characteristics, not its quality or grade. This means that there is a broad range of exchangeable real properties. Vacant land can be exchanged for a commercial building, for example, or industrial
Tax Mitigation Playbook: is this a property “exchange”?
A sale followed by a purchase does not qualify as a 1031 Exchange. Rather a process of intention needs to be in place to qualify for an exchange to count for the tax benefits. The transaction must be treated as
Tax Mitigation Playbook: 1031 Exchange Pitfalls to Avoid
Excess Funds The identification period of a 1031 exchange refers to the first 45-days when a taxpayer identifies property they would like to acquire as a replacement to their relinquished property. It is common for a taxpayer to identify more