TEE-Shots Newsletter

To have a tax-free 1031 exchange you have to do two things: 1) you have to reinvest all the cash left over from the sale, and 2) you have to buy equal or up.

Failure to do both of these things will result in a tax liability. It doesn’t toast your exchange—you simply pay tax on the cash you didn’t reinvest. Or you pay tax on the amount of the buy-down.

Have you ever thought of moving into one of your rental properties? Or perhaps buying something in a 1031 exchange that you could move into some day? If so, this Tee-Shot will explain the ramifications of doing this.
Tee-Shot from the 1031 Experts!

Using Section 1031 to Buy a House You Want to Live in
by Gary Gorman founding partner, 1031 Exchange Experts, LLC

In an April 2009 bankruptcy ruling, the court ruled that monies held in an intermediary’s SUB-accounts were available to all creditors.

The sub-accounts were part of a “pooled” account structure (where the exchange proceeds were dumped into one pot), yet they were made to appear to the clients as if they were separate accounts. The courts had previously ruled that commingled, or pooled, accounts were bankruptcy assets and therefore available to all creditors.

There was a partnership that had two partners: A and B. B wanted to sell his 50% interest to A. Since A already owned the other 50%, when he acquired the interest and the transaction was completed, he would own all of the partnership.

When Congress passed the Housing Assistance Act of 2008, their goal was to help those people who were losing their homes in foreclosure. One of the side effects of the bill, however, was a change that could affect taxation on the gain from the sale of your personal residence.

If you, or any one you know, has a pending 1031 exchange with LandAmerica Title, this TeeShot is a must read!

Who LandAmerica Is
LandAmerica Title Company, who trades on the New York Stock Exchange as LandAmerica Financial Group (ticker symbol LFG) is on the verge of collapse following the decision of Fidelity Title to not pursue a merger with LandAmerica. LandAmerica is one of the largest title companies in the United States.

In this current climate of lender uncertainty, we’re getting a lot of questions about “owner carry” notes and how they impact a 1031 exchange. Whether you call it seller financing, contract for deed or purchase money mortgage, what we are talking about is the amount of financing the seller of a property is willing to help the buyer with.

Recent articles have appeared in the news about 1031 exchanges, and how some Accommodators have abused their clients by stealing their money. But there’s more to the GOOD than just the BAD and the UGLY:

THE GOOD: The 1031 Exchange Experts have taken additional steps to ensure the safety and security of clients’ money and exchanges.

THE BAD: The 1031 industry is unregulated.

And THE UGLY: Many QIs have abused this business and their clients for millions of dollars.

We LOVE this question, because it takes YOU virtually no time at all. We do all the work, because that’s what WE do. Don't you hate it when a service takes your credit card info and then proceeds to tell YOU how to fix it? I mean, who’s paying who?!

I know about Real Estate, but what ELSE can I 1031 Exchange....?

While we here at The Experts are doing our part to promote real estate back to its' former glory, there are other things you can do to save on capital gains taxes in the meantime.