Learn about how 1031 exchange can be used in the oil & gas industry. Presented by Brendan Lewis, Senior Director at Accruit, and Troy W. Eckard, CEO of Eckard Enterprises.

On an episode of the Rental Income Podcast, Accruit Senior Director Brendan Lewis explains the basics of a 1031 in an easy to understand way. He talks with Dan Lane about deadlines investors need to be aware of, and several situations that investors may find themselves in. They also talk about how to do a 1031 with partners, what happens if you own a property in an LLC, and how you can take some money out during the 1031.

On June 11, 2020 the U. S. Treasury released proposed regulations that have been promised since the passage of the Tax Cuts and Jobs Act (TCJA) at the end of 2017. In the TCJA, Congress repealed 1031 like-kind like-kind exchanges of personal property and left taxpayers with only real property 1031 exchanges. There are four primary provisions that clarify or change the current application of Section 1031.

What happens if you intended to effect a 1031 exchange, but the relinquished property sale closes and you receive the proceeds? In a 1031 exchange 1031 exchange , you may not receive relinquished property sale proceeds if the transaction is to qualify as an exchange and any capital gains are therefore taxable. With cooperation of the buyer and other parties to the transaction, you may be able to rescind the initial transaction and go forward with a 1031 exchange.

The FEA issued its second joint letter dated April 20, 2020 requesting clarity on the 1031 exchange 1031 exchange deadlines per IRS Notice 2020-23. The ambiguity of the Notice has left questions regarding pertinent details, such as if this deadline extension is mandatory, or simply available for those who need more time to complete their 1031 exchange.