Most users of Section 1031 understand the 180-calendar day deadline to complete their like-kind exchangelike-kind exchange
. This general understanding of the exchange periodexchange period
deadline is fine for most transactions, but many exchangers remain unaware of the more nuanced definition of this critical period.
The 1991 tax deferred exchangedeferred exchangeregulations provided for various “safe harbors” to allow certain specific actions set forth in the regulations to be utilized by parties without otherwise running afoul of the rules. Without the safe harbors, these actions would disqualify an exchange. These safe harbors were put into the regulations as solutions for problems in the mechanics of an exchange...
Modern day tax deferred exchanges began in the early 1980s with a court ruling (the Starker case) that an exchange for relinquished propertyrelinquished property and the purchase of corresponding ...
A 1031 like-kind exchangelike-kind exchange (LKE) program allows a business to postpone the tax hit on sales of used equipment in anticipation of buying replacement equipment, and each year more business owners seize upon the cash-flow benefits available via a 1031 like-kind exchange strategy, recognizing that reinvesting money into their business beats...
Compliance with the IRC Section 1031 Regulations is a lot of form over substance -- if you want to attain a tax benefit, every i has to be dotted and every t crossed. Good faith efforts are not enough, because lurking in the regulations are numerous procedures that have to be followed to achieve a successful deferred exchangedeferred exchange . Among other things, these rules require avoiding constructive receipt of the exchange funds received in the...
The IRC Section 1031 regulations have at their core a rule against the taxpayertaxpayer being in actual or constructive receiptconstructive receipt of exchange proceeds. This rule covers the period of time from the point of sale of ...
With the first quarter of 2016 nearly over, owners of heavy equipment are busy finalizing their 2015 financial statements. Once those financial statements are complete, accountants will be busy preparing the related tax returns. For those owners who have completed a 1031 like-kind exchange...
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