Field Guide to 1031 Exchanges
(Updated April 2006)
Section 1031 of the U.S. Internal Revenue Code allows investors to defer capital gains taxes on the exchange of like-kind properties. 1031, or tax-deferred, exchanges hold great advantages for both investors and REALTORS®. This Field Guide provides access to articles, manuals, forms, ideas, and other information to help you start building your 1031 niche. (F. Heller, Manager, Archives & Virtual Library)
Contents:
Section 1031 Exchanges: The Basics | Exchange Information for REALTORS® | Reverse Exchanges | Tenancy-In-Common (TIC) Exchanges | Web sites for more information | Books, eBooks & Other Resources
Rules, Forms, & Guidelines from the IRS
Publication 544: Sales and Other Dispostion of Assets
Like-Kind Exchanges: Real Estate Tax Tips
Internal Revenue Code, Part 1: Income Taxes - Scroll down to access section 1.1031 et seq.
Rev. Proc. 2002-22: Undivided fractional interests in real estate - Scroll to page 733.
1031 Basics
1031 Exchange FAQs, (Federation of Exchange Accomodators).
Section 1031 provides advantage for swapping over selling, (Practical Tax Strategies, Dec. 2005). Q
Show me the money: Using exchanges, (Realty Times, July 19, 2005).
Five misconceptions of 1031 exchanges, (National Real Estate Investor, May 2005).
1031 Exchange Manual, (1031 Corporation, 2004).
The basics of a deferred like-kind exchange, (Business Entities, Sept./Oct. 2003). Q
An overview of real estate like-kind exchanges, (The Appraisal Journal, July 2003). Q
20 questions about deferred realty exchanges under IRC Sec. 1031, (The CPA Journal, May 2003). Q
Review the fundamentals of Section 1031 like-kind exchanges, (Commercial Investment Real Estate, Jan./Feb. 2003).
1031 exchanges -- qualification and planning, (Journal of Financial Service Professionals, Jan. 2006). Q
Title holding issues in 1031 exchanges, (Realty Times, Mar. 3, 2006).
Sale of a residence and like-kind exchanges, Part 1 and Part 2, (The Tax Adviser, Nov. 2005). Q
What type of properties qualify for a 1031 exchange?, (Realty Times, Sept. 5, 2005).
Unlocking new revenue streams in real estate: Three winning strategies to maximize your 1031 exchange, (Georgia REALTOR®, June 2005).
Like-kind exchanges -- common problems and solutions, (The Tax Adviser, Apr. 2005). Q
Make a clean exchange: Avoid common mistakes with 1031 exchanges, (Texas REALTOR® , Mar. 2005).
Use 1031 exchanges to close more deals; Practitioners capitalize on tax code to capture lifelong clients, (REALTOR® Magazine, Feb. 2005).
Multi-asset mastery: These tax-deferred exchanges require pre-planning and careful attention, (Commercial Investment Real Estate, Nov./Dec. 2004).
Exchange eligibility: Do your properties meet IRS requirements for 1031 transactions?, (Commercial Investment Real Estate, July/Aug. 2004).
1031 details: Manage transactions precisely to maximize tax benefits, (Commercial Investment Real Estate, Mar./Apr. 2004).
Leasehold interests offer alternative 1031 exchange options, (Commercial Investment Real Estate, Nov./Dec. 2003).
1031 exchanges do more than save taxes; These transactions can be used strategically to upgrade portfolios or even to liquidate partnerships, (National Real Estate Investor, Jan. 2003).
Smooth moves: Successful exchanges follow these 12 rules of the road, (Commercial Investment Real Estate, Mar./Apr. 2001).
Exchanges add value in up markets, too; Like-kind exchanges offer complicated, but important option to clients interested in disposing of property, (REALTOR® Magazine, Jan. 2001).
Reverse exchanges: An alternate route, (REALTOR® Magazine, Aug. 2005).
Some practical aspects of undertaking a reverse exchange, (Business Entities, July/Aug. 2005). Q
Using the reverse Starker, (Realty Times, Sept. 29, 2003).
Reverse exchanges offer investors tax-saving benefits, (Commercial Investment Real Estate, Mar./Apr. 2003).
New safe harbor for reverse exchanges, (The CPA Journal, Jan. 2003). Q
Tax trade-off; Section 1031 offers a safe harbor in like-kind exchanges, (Journal of Property Management, Sept./Oct. 2002). Q
Reverse exchanges come of age, (Journal of Accountancy, Aug. 2001). Q
Common interests: Tenancy-in-Common investments create opportunities for property owners and managers, (Journal of Property Management, Mar./Apr. 2006). Q
TIC reinvestment strategies: As the tenant-in-common industry prepares for a slew of property sales, real estate investors contemplate their next move, (Trusts & Estates, Mar. 2006). Q
Tenants-in-Common Interests (Hot Topics -- Answers to Current Business Issues), (REALTORS® Commercial Alliance, 4th Quarter 2005).
The pizza paradigm: Investors buying into the TIC pie to avoid capital gains taxes, (Real Estate Finance, Aug. 2005). Q
TICs take off, (RCA Report, Summer 2005). - Scroll to page 6
Riding the TIC wave, (National Real Estate Investor, June 2005).
Splitting Heirs: Carefully manage tenancy-in-common investments to facilitate smooth wealth transfer, (Commercial Investment Real Estate, Jan./Feb. 2005).
The ABCs of TICs: Learn the fundamentals of this 1031 exchange strategy, (Commercial Investment Real Estate, Jan./Feb. 2005).
1031 exchange options: Tenancy-in-common, (Realty Times, July 28, 2004).
1031 exchangers test the waters, (National Real Estate Investor, June 2004).
Using Tenacy-in-Common interests, (RCA Report, Spring 2004). - Scroll to page 8
IRS revenue procedure provide guidance for Section 1031 exchanges for property held in tenancy-in-common form, (Real Estate Finance, Aug. 2003). Q
Glossary of Real Estate Exchange Terminology - Basic glossary of exchange-related terms, from Asset Preservation, Inc. and James A. Smith.
eBooks & Other Resources
eBooks.realtor.org
The following ebooks and digital audiobooks are available to NAR members:
The Tax-Free Exchange Loophole: How Real Estate Investors Can Profit from the 1031 Exchange (Adobe eReader)
How to Invest in Real Estate And Pay Little or No Taxes: Use Tax Smart Loopholes to Boost Your Profits By 40% (Adobe eReader)
Books, Videos, Research Reports & More
The resources below are available for loan through Information Central. Up to three books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10. Call Information Central at 800.874.6500 for assistance.
Building Wealth through 1031 exchanges, By Thomas Moylan & Moore McLaughlin, (All States 1031 Exchange Facilitator, LLC, 2006).
1031 Exchanges: How They Work, (Professional Exchange Accomodators, LLC. 2005).
The Tax-Free Exchange Loophole, By Jack Cummings, (John Wiley & Sons, Inc., 2005).
The Complete Guide to Your Real Estate Closing, by Sandy Gadow, (New York: McGraw-Hill, 2003).
Investing in Real Estate, 4th Ed., By Andrew McLean & Gary Eldred, (Hoboken, NJ: John Wiley & Sons, 2003).
Like-Kind Exchanges, By James Martin, Jr. & Timothy Eifler, (Lexington, KY: University of Kentucky College of Law, 2002).
Field Guides & More
These Field Guides and other resources in the Virtual Library may also be of interest:
Field Guide to Investing in Real Estate
The inclusion of links on this Field Guide does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked to this Field Guide complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.
