This is your simple guide to 1031 exchange tax reporting. Nobody enjoys paying their taxes. While we can’t make it fun for you, we can at least help your 1031 exchange tax reporting make more sense. In this post, you’ll learn 5 important things: When do I report my 1031 exchange? How do I report my 1031 exchange? Which IRS form(s) do I need? I have leftover “boot”. How do I report that income? What if my 1031 exchange failed? What if I sold or bought multiple properties? Caution: This post does not replace your tax adviser. Unless you also speak with an expert, no guide can ..read more

Question: After completing my 1031 exchange, how long must I wait before I can safely convert my replacement property into my principal residence? Table of Contents What investment property owners should know about taxes Tax consequences of selling an investment property How to move into your investment property and make it your principal residence The benefits of converting investment property to principal residence Converting to a principal residence used to be much simpler Limitations on combining a section 121 and 1031 exchange today Example of how to effectively combine Secti ..read more

Needless to say, the COVID-19 pandemic came out of nowhere and left an economy reeling in its wake. The effect on real estate is profound, but not necessarily crippling.  In this interview, 1031x director Sean Ross speaks with Denver realtor Lauryn Dempsey, who Outlines an “on-the-ground” perspective on every-changing news and regulations Explains how real estate professionals can stay nimble and responsive Shares her strategies for supporting clients 3-D tours and digital showings. Salvaging terminated listings. Being objective amidst chaos and confusion. It’s all in h ..read more

We explore the upcoming Biden Administration, the effect of COVID vaccines, which metrics matter the most when choosing real estate investments, and much more. The COVID-19 pandemic hit commercial and luxury real estate harder than most other RE segments. We saw aid from the Federal Reserve and Congress go toward businesses, workers, municipalities, residential homeowners, and tenants to the tune of more than $4 trillion! CRE saw little of that. Instead, vacation rentals dried up. New regulations and job losses made collecting rents from tenants a nightmare. This is particularly true i ..read more

Wednesday evening, President Joseph Biden unveiled his next ambitious $1.8 trillion spending bill — dubbed the American Families Plan. Almost immediately thereafter, the real estate industry began sounding alarms over the proposal to substantially limit Section 1031 “like-kind” exchanges. This is nothing new. In fact, legislators target 1031 exchanges with some regularity. Back in 2016, lawmakers from the then-victorious Republican Party tried to overhaul the Internal Revenue Code. Their initial package aimed to close several so-called “loopholes” — 1031 exchanges included among them. After s ..read more

What Is “Boot” in Relation to 1031 Exchange? “Boot” is old financial parlance that means “value given in addition to.” In a 1031 Exchange, “boot” is anything received by the taxpayer that is not like-kind property. The IRS taxes the value of boot items. You won’t find the term “boot” in the Internal Revenue Code. And it does not appear in the Treasury Regulations. The term is common in car trades. So if a new car trades for an old car, the owner of the old car often brings extra money (aka boot) to even out the trade. In a 1031 exchange, boot is anything received by the exchanging seller tha ..read more

1031x is very excited to announce the release of the new 1031 Exchange Investor Center. This free resource covers 37 key topics — including IRS rules, top investor strategies, the role of the qualified intermediary, 1031 deadlines, taxable “boot”, and lots more. Our new Investor Center was one of the most intensive projects that our team undertook in 2020. In fact, it required more than 100 hours of research, writing, designing, editing and coding. And we’re not finished there. Each month in 2021, we will set out to add even more great content to the Investor Center based on c ..read more

We explore the upcoming Biden Administration, the effect of COVID vaccines, which metrics matter the most when choosing real estate investments, and much more. Matthew Frankel, senior real estate analyst for Millionacres, a Motley Fool service, sat down with us (virtually) to share his expertise for our latest 1031 Expert Interview. As you’ll see, Matthew is a level-headed and clear communicator. He has been a contributor for the Fool.com for nearly a decade and heavily invests in the real estate sector himself. His answers are direct and actionable — just the way we like it. Below, we explo ..read more

We explore the upcoming Biden Administration, the effect of COVID vaccines, which metrics matter the most when choosing real estate investments, and much more. America just had a Presidential Election. It could mean big changes for real estate investors. As we’re writing this, it sure seems like Joseph Robinette Biden Jr. will become the 46th President of the United States. Normally, we don’t cover politics at 1031x. Except that earlier this year, we noted that Biden’s campaign openly targeted “like-kind” real estate exchanges (i.e. 1031 exchanges) as a way to pay for fut ..read more

AS THE OWNER of an investment property, one of your main priorities should be to add value to that property. You’ll generate more revenue, attract better tenants, and later command a higher resale price. Landlords and property owners commonly upgrade their buildings, of course. But, thanks to the wide range of innovative materials and upgrades available today, there’s never been a more lucrative time than now. Want to take maximum advantage of today’s value-add options? Try these: A Delightful Discovery Details are still emerging. We do know that the American Families Plan (AFP) purpo ..read more