1031 Exchange Blog
In this whiteboard animation video, we discuss the pros and cons of doing a cashout refinancing before a 1031 exchange.
Start Your 1031 Exchange: If you have questions about cashout refinancing before a 1031 exchange, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
© 2016 Copyright Jeffrey R. Peterson All Rights Reserved
In today's marketplace it's really easy to be a seller because it’s a hot seller's market. There's a lot of people competing for the same replacement properties particularly in certain segments of the market like multi-family apartments. Here's where a reverse exchange can help you solve the problem of how to align your relinquished property with your replacement property.
Step one is do a reverse exchange, find the replacement property first since that's the harder task lock it up with a purchase agreement and if necessary you can close on it having your qualified intermediary form a new LLC and that LLC acts as a straw man purchaser and temporarily holds title to the replacement property for up to 180 days until you then later sell the relinquished property.
So the beautiful thing is once you've sold your relinquished property it's really easy to complete your exchange because your replacement property is waiting for you on the shelf and we just take that replacement property off the shelf and transfer it to you to complete the exchange.
The problem is that it's hard to find replacement properties the opportunity is to use a reverse exchange to lock in a sure thing so that you know with certainty you have your replacement property waiting for you at the end of this process.
Start Your 1031 Exchange: If you have questions about reverse 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
© 2016 Copyright Jeffrey R. Peterson All Rights Reserved
In this whiteboard animation video, we offer some tips for engaging in a reverse 1031 exchange.
Start Your 1031 Exchange: If you have questions about reverse 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
© 2016 Copyright Jeffrey R. Peterson All Rights Reserved
What do divorced people need to know about 1031 exchanges? Here are some things to consider when juggling a 1031 exchange and a divorce.
When you get divorced and receive a property in a marital termination, you may receive 100% ownership of the property or you might split the ownership with your ex-spouse.
Alternatively, your ex-spouse may have a lien against the property you are selling. So if you've been divorced and now you are selling an appreciated asset, you need to be particularly concerned with the tax ramification of your sale of that property. If you own the property 50/50 with your old spouse, each of you as co-sellers could separately do 1031 exchanges, or one spouse may choose to do an exchange while the other ex-spouse may choose to take their tax hit.
If you received 100% ownership of the property in the divorce but your spouse maintains a marital lien on the property, you'll need to pay off that marital lien at the closing of the relinquished property. And then when you acquire your new replacement property you want to make sure that your new property is of equal or greater value than your old property, that you've reinvested all of your net proceeds, and that you've offset any debt relief including the marital lien with new debt or new cash in on the replacement property.
Start Your Exchange: If you have questions about 1031 exchanges during a divorce, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
© 2016 Copyright Jeffrey R. Peterson All Rights Reserve
If you're a banker you are a relationship manager which means that you're always looking for ways to bring more value to the representation of your clients. Bankers know their clients’ situations and often can see opportunities that their clients don't even realize are in front of them. Here are a few things bankers need to know about 1031 exchanges in order to help their clients.
One of the most important opportunities that a banker has is to make that critical introduction to a qualified intermediary when their client is about to sell a property in what could be a fully taxable transaction. If the banker has their eyes open and sees the opportunity they can save their client hundreds or thousands of dollars by showing them the benefits of a 1031 exchange. Rather than selling the property outright in a taxable transaction, since you're probably already buying another property why not use a qualified intermediary to defer those gains indefinitely.
Nothing puts a smile on your client’s face bigger and better than when a banker shows a client how to save hundreds or thousands of dollars in taxes. That is truly bringing benefit to the relationship between the banker and the client.
Start Your 1031 Exchange: If you have questions about what bankers need to know about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
© 2016 Copyright Jeffrey R. Peterson All Rights Reserve
