SCES 1031

If you are a real estate investor looking for replacement property to satisfy your 1031 exchange requirements, make sure you’re not only investing in like-kind property but you’re using exchange funds to pay for certain closing costs that qualify as well.

Not all closing costs qualify as a deduction, which means you could be reducing your netted proceeds and not replacing an adequate value that truly satisfies your 1031 exchange.

Most investors are under the impression that ALL closing costs can be deducted from their Sales Price and that’s the replacement value they look for. But, that is not the case. Costs associated within the contract and for the service of closing are deductible, others aren’t.

Make sure you know this so you don’t end up paying taxes when you thought you were in the free and clear.

Scroll through to see specific costs that ARE and ARE NOT deductible. You may be surprised at some of them.

If you are looking for a reputable and reliable 1031 exchange company, look no further! is a national qualified intermediary who helps real estate investors minimize their tax liabilities when selling investment properties.

DM us if you’re ready to start your exchange or have questions.

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Drop it like it’s 🥵

Many savvy real estate’s investors own property with others, in a partnership like an LLC. This can seem like gravy until it’s time to sell and the partners are not on the same page or wanting to stay together in the next investment.

This is where tax advice is STRONGLY 💪🏻 encouraged.

➡️ Is it best to dissolve the partnership ahead of time and then everyone can either sell or do a 1031 exchange individually?

OR

➡️ Does the partnership stay together to reinvest its money into another investment property thru a 1031 exchange, alleviate any taxable event, and then decide when it’s time to dissolve the partnership into individual interests, each as tenants in common?

In either scenario, you need advice on how long 🕰️ the drop of the partnership should happen prior to or following the completion of the 1031 exchange.

The reasoning? Partnership interests are viewed differently than individual interests by the IRS. This means that each entity would need to use the investment property for a duration of time (usually 1-2yrs) in order to be considered a long-term investor.

In other words, dropping out of a partnership too quick, prior to a 1031 exchange could trigger a taxable event. And, dropping out of the partnership too quickly after completing a 1031 exchange could cause the same.

What you need to understand is that there is no defined holding period within the Statute regarding this topic. It’s a gray area. Tax advisors have their legal opinions based off of federal cases and their opinions may vary. Their opinion matters because they are the ones who will go to bat for you if the IRS tries to overturn the 1031 exchange.

Bottom line: Dropping & Swapping, Swapping & Dropping is doable it just takes planning…and tax advice.

Ready to start your 1031 exchange? DM us! We operate nationwide.

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Who’s excited?? 🙋🏼‍♀️I know I am!!

This webinar is for anyone who:

✅ wants learn more about 1031 exchanges

✅ wants to gain a competitive edge in real estate investing

✅ wants to learn ways to build your income stream

✅ wants to discover replacement property options that meet their 1031 exchange requirements

To secure your spot, you must register for the webinar. DM the word REGISTER and we will send you the link.

Looking forward to seeing you there 😁