Real property held for productive use in a trade or business or for investment can be exchanged for any other real property held for productive use in a trade or business or for investment – these properties are considered “like-kind” to one another. Examples of like-kind investment real estate include: exchanging unimproved for an improved [...]
The improvement exchange, sometimes referred to as a construction or build-to-suit exchange, allows an investor, through the use of a qualified intermediary, to make improvements on the replacement property using exchange equity. The improvement exchange can often result in a better or more suitable investment property that those readily available on the open market. The [...]
IRC Section 1031 tax-deferred exchanges allow real estate investors to defer capital gain taxes on the sale of real property held for productive use in a trade or business or for investment. This tax savings provides many benefits including the obvious – 100% preservation of equity. Investors can take advantage of 1031 exchanges to meet [...]
Boot is any non-like-kind real property received by the taxpayer and is taxable to the extent there is capital gain. “Cash boot” is the receipt of exchange proceeds by the taxpayer. “Mortgage boot”, also sometimes referred to as “debt relief,” is the taxpayer having less debt on the replacement property or properties that they had [...]
