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Section 1031 Can
Help Accomplish
2019 Goals
As the year winds down, many of us are  beginning our annual list of resolutions and evaluating our goals. For some, our goals might include the purchase of a vacation home, diversify our real estate portfolio, increase our revenue stream, retire and maybe even find more time to enjoy life. Yes, they all sound great but for those that currently own investment property, a 1031 exchange may help you accomplish these goals even sooner!
A 1031 exchange is a tax deferral strategy allowed under Section 1031 of the Internal Revenue Code. It provides that no gain or loss will be recognized on the exchange of real property held for use in a trade or business or for investment. The deferral includes the gain and depreciation recapture. A 1031 exchange is much like a sale followed by the acquisition of real property linked together by paperwork and completed within the required time periods. To maximize your tax deferral, you must acquire replacement property of equal or greater net value and net equity or pay tax on the difference. A qualified intermediary is an independent party that is required to facilitate your exchange.
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Not What It Used to Be:
Converting 1031 Replacement Property to Primary Residence
While converting a replacement  property acquired in a 1031 exchange from investment or business use to a primary residence is still frequently done, the strategy no longer provides the same benefits as a decade ago.
In 1997, a revised Section 121 of the Internal Revenue Code, created a great opportunity for those who owned 1031 replacement property and wanted to convert it to a primary residence. Under the Taxpayer Relief Act of 1997, old Section 121 and Section 1034 were repealed. Old Section 121 provided a once in a lifetime exclusion of up to $125,000 of gain when selling a primary residence as long as at least one spouse was over 55 years of age. Section 1034 allowed the rollover of the gain when selling your primary residence as long as you acquired a new one of greater value within two years of the sale of the old primary residence. The Taxpayer Relief Act of 1991 gave us a new Section 121 which provides that if you used it as a primary residence for at least 24 months within the last five years, you may exclude up to $250,000 of gain ($500,000 if married, filing jointly). Of course, you cannot have taken the Section 121 exclusion within the past two years.
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Register Today!
Thursday, July 5, 2018 12 pm Eastern/ 9 am Pacific
Tuesday, July 10, 2018 12 pm Eastern/ 9 am Pacific
Tuesday July 17, 2018 12 pm Eastern/ 9 am Pacific
Thursday July 19, 2018 12 pm Eastern/9 am Pacific
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Message from our President
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Margo McDonnell |
Dear Friends,
As 2018 comes to an end, we have to pause to say thank you for your business. Your loyalty and friendship makes everything we do worthwhile. We appreciate the opportunity to assist you with your exchanges and look forward to working with you in 2019!
Warm Regards,
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About 1031 CORP.
Serving as a nationwide qualified intermediary for 1031 tax-deferred exchanges since 1991, 1031 CORP. strives to provide a superior exchange experience for our customers and their advisors. We provide our customers with enhanced security of funds, knowledgeable exchange professionals and a commitment to keep the exchange process simple for our customers 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.
Additional information can be found at www.1031CORP.com.
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Danielle Brock
Pacific Northwest
Regional Manager
541.388.1031 ext. 232
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Emily Carty
Exchange Officer
541.388.1031
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Deanna Adzima
Exchange Coordinator
541.388.1031
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Margo McDonnell, CRE, CES®
Certified Exchange Specialist®
President and CEO
1.800.828.1031 ext. 212
Mobile: 610.680.6896
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