On October 15th Accruit will be hosting our monthly 1031 educational webinar, presented by Martin Edwards. This month will dive into two commonly used, but often misunderstood, strategies in 1031 Exchanges: the “Drop & Swap” and “Swap & Drop.” These approaches are used when ownership structures complicate a traditional exchange, such as when property is held in a partnership or LLC and not all members want to move forward with a 1031 exchange.
This session will provide a foundational overview of Section 1031, explore the legal and tax complexities of altering ownership structures before or after an exchange, and outline considerations, as well as practical strategies to help reduce risk and maintain compliance.
Topics to be discussed include:
- A refresher on 1031 Exchange rules and regulations
- The Same Taxpayer Requirement – what it means, why it matters, and how it impacts entity-level ownership
- What defines a “Drop & Swap” and “Swap and Drop”
- Common challenges, such as:
- IRS scrutiny of recent ownership changes
- Holding period concerns for newly distributed or acquired property
- Variations in how different states view these transactions
- Practical tips for minimizing audit risk and preserving tax deferral
This webinar is ideal for real estate investors, tax professionals, and legal advisors navigating entity-owned property exchanges. Gain a clearer understanding of how to approach these nuanced strategies with confidence and compliance.
Register for FREE by clicking this link.