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Eligible Property Types in a 1031 Exchange
One of the most important requirements for a 1031 exchange is that the property must be held for investment or business purposes. Eligibility is not based on the type of property alone, but on the owner’s intent to hold the asset as an investment. Understanding the difference between investment property and personal use property is…
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Key Terms to Know in a 1031 Exchange
Navigating a 1031 exchange can be complex due to the specific terminology and requirements involved. Whether you’re just starting to learn about 1031 exchanges or need a refresher on some key terms, understanding the essential language is crucial for a smooth transaction. In this blog, we’ll break down some of the most important 1031 exchange…
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Understanding Allowable vs. Taxable Expenses in a 1031 Exchange
When engaging in a 1031 exchange for selling or acquiring an investment property, specific expenses covered by the sales or exchange proceeds may trigger a taxable event for the exchanger. Standard selling costs like broker commissions or title closing fees do not incur tax liabilities. However, operational expenses paid from 1031 proceeds during closing will…