Better Together: Cost Segregation and 1031 Exchanges

Keeping the exchange process simple for you!

SEPTEMBER 2022

Better Together:

Cost Segregation

and 1031 Exchanges

Bruce Johnson, Capstan Tax Strategies

Commercial real estate owners, developers, and investors have many tools at their disposal with which to develop a strong tax strategy. In addition to the stable of well-known strategies, the last few years have seen many expanded programs designed to incentivize real estate development. Two great examples are the 1031 exchange and accelerated depreciation, also known as cost segregation. Up until 2017, these two long-standing strategies have typically been mutually exclusive endeavors, as a byproduct of the 1031 process is a low step-up basis, which mitigates the effectiveness of cost segregation. However, the Tax Cuts for Jobs Act (TCJA) changed aspects of both strategies in a way that facilitates their simultaneous use.

Ten Common Parking Exchange FAQs

With the current hot real estate market, finding the ideal replacement property is the hardest part of completing an exchange. Reverse exchanges and improvement exchanges can provide creative solutions. A reverse exchange will enable you to lock up the replacement property before you transfer your relinquished property to a buyer. An improvement exchange allows you to use your exchange proceeds to improve a less than perfect replacement property. Both require additional planning and cost a little more than a delayed exchange, but both preserve your ability to exchange in a challenging real estate market.

FAQs: Pennsylvania to Recognize 1031

As shared in July, Pennsylvania will finally recognize 1031 exchanges. Pennsylvania residents selling property in or out of the Commonwealth and non-residents selling property in Pennsylvania will not only be able to defer federal gain, but they will also be able to defer Pennsylvania income tax on exchanges initiated after January 1, 2023.

We have had many questions since the announcement.

Read the FAQs

1031 CORP. Names Bruce Glendinning

Chief Growth Officer

1031 CORP. enthusiastically announces it has named Bruce Glendinning as Chief Growth Officer. Bruce is responsible for the Company’s holistic growth and the client journey. His efforts include growing the 1031 CORP. brands, generating sales and marketing strategies for sustainable growth, and maintaining a consistent conversion of leads to retained clients.

Bruce joins the 1031 CORP. Team after a successful business and real estate sales management career. He spent nearly 30 years with Berkshire Hathaway HomeServices Fox & Roach, REALTORS^®, with over twenty years as a regional manager in the Philadelphia area, overseeing dozens of offices and thousands of real estate professionals. After relocating to South Carolina during the pandemic, he was responsible for the expansion and growth of COMPASS Real Estate into the Carolinas.

Upcoming Events: Stop by and see us!

2022 ANNUAL MEMBERSHIP MEETING

October 6, 2022

11:30 am - 2:00 pm

Springfield Country Club

400 W. Sproul Road

Springfield, PA 19064

TAX CON 2022

November 15-16, 2022

8:00 am - 5:30 pm

The Alloy -

a Doubletree by Hilton

King of Prussia, PA

Booth #528

The Triple Play REALTOR^® Convention & Trade Expo

December 5 - 8, 2022

Atlantic City

Convention Center

Atlantic City, NJ

Wealth-Building Webinars

1031 Exchanges Made Easy

Thursday, October 6, 2022

12:00 PM ET

We will provide an easy to follow overview of 1031 tax-deferred exchanges and their many benefits. We'll also review the requirements of a successful exchange and the essential role of 1031 CORP. to keep the exchange transaction simple for all parties and wrap up with questions and answers.

About 1031 CORP.

Serving as a nationwide Qualified Intermediary for 1031 tax-deferred exchanges since 1991, 1031 CORP. strives to provide an exceptional exchange experience for our clients and their advisors. We provide our clients with enhanced security of funds, knowledgeable exchange professionals and a commitment to keep the exchange process simple for our clients and their advisors. Our Exchange Team, which includes Certified Exchange Specialists^®, has the experience and expertise to facilitate even the most complex exchange transactions, including reverse and improvement exchanges.

1.800.828.1031 | www.1031CORP.com