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1031 EXCHANGES do more than save taxes



At its core, a 1031 exchange is designed to accomplish one simple goal: to avoid taxes. But owners turn to 1031 exchanges to carry out a variety of business strategies. A retail owner might use an exchange to trade an old mall for a newer, trendier shopping center. In a more complex deal, an exchange can be part of an exit strategy for a partnership.


In a 1031 exchange, owners defer the capital gains tax they typically pay in a property sale. For instance, an investor that purchases a building for $20 million and then sells it for $50 million will avoid paying taxes on the $30 million gain.
To complete an exchange, an investor uses property instead of money as the medium for the transaction, essentially paying for the new property with the title of the relinquished property. The equity held by the investor in the new property must equal or exceed the equity held in the previously owned property. The key benefit...

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Title: 1031 Exchanges
Approximate word count: 1364
Approximate pages: 6 (250 words per double-spaced page)

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1. 1031 Exchanges
   

   1031 exchanges. 1031 EXCHANGES do more than save taxes At its core, a 1031 exchange
   is designed to accomplish one simple goal: to avoid taxes. ...

2. 1031 Exchanges
   

   1031 Exchanges. ... Groups of investors can form a TIC relationship and utilize 1031
   Exchanges to acquire larger more substantial real estate properties. ...

3. Finding The Adjusted Basis
   

   ... problem. Section 1031 does provide specific regulations regarding exchanges
   where the presence of cash (boot) is involved. "If an ...

4. Bank Of China Hong Kong 'S
   

   ... lawyers and accountants to prepare filings with the exchanges and securities ...
   Depreciation Expenses 460 514 Other Operating Expenses 959 1,031 Total Operating ...