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Many investors are aware of 1031 exchanges, and their usefulness in their real estate portfolios. These investors use 1031 exchange to reposition their investments to other neighborhoods or other states, or to redistribute their investments to different asset classes. As all real estate is like-kind to other real estate, this opens up a variety of options when selling one type of property to invest in another.

Since 1921, the rules for qualifying and completing 1031 exchanges have gradually broadened and become less restrictive. Even so, there are do’s and don’ts as well as several gray areas of which taxpayers should be aware. Here at Accruit, we are accustomed to dealing with all types of complex exchanges, and we want to make sure that the complexity of an exchange doesn't deter you from considering one. We'll help you put the pieces together for a successful exchange.

The IRS has issued extensions of exchange transactions under the guidelines set forth around federally declared disasters in Alabama. Accruit suggests that affected taxpayers consult with their tax and legal professionals as well as confirm on IRS website for any updates.

In a reverse exchange, the replacement property is acquired before the replacement property is sold. Although a seemingly more complex transaction, for exchangers who have the financial capacity to do so, structuring transactions as reverse exchanges is an option that is often overlooked. Among other things, it takes away the pressure of having to narrow down choices of possible replacement property within 45 days of a sale of the original property.