By Esther Rozsansky, Certified Exchange Specialist
Madison Exchange
A month after Hurricane Sandy, the IRS has reevaluated and added more counties to list of places that qualify for extensions on the 45-day identification period and 180-day exchange period for active IRC 1031 like kind exchanges. This tax relief is still granted on a county-by-county basis. Click here to read which additional counties are now included. Continue reading
By Esther Rozsansky, Certified Exchange Specialist
Madison Exchange
As expected, the IRS extended the 45-day identification period and 180-day exchange period on active IRC 1031 like kind exchanges for victims of Hurricane Sandy. This tax relief is granted on a county-by-county basis. It is possible, but unlikely, that the IRS may add additional counties to its current list. Click here to learn which area are covered and the criteria that must be met to qualify for the extension. Continue reading
Written by Lee David Medinets, Esq.
General Counsel, MCRES and Senior Counsel for Madison 1031
IRC § 1031 provides an opportunity to defer taxes when like-kind properties are exchanged. In order to qualify, one essential requirement is that both the relinquished property and the replacement property must be “held for productive use in a trade or business or for investment.” Therefore, a common problem in like-kind exchanges is to determine whether a particular residential property is held for investment or for personal use. Two recent U.S. Tax Court cases give a little help in making that distinction. Continue reading
The leadership at Madison Commercial Real Estate Services (MCRES) will be attending and exhibiting at RECON 2012, the largest retail commercial real estate convention in the world. Hosted by the International Council of Shopping Centers, the RECON Show will be held in Las Vegas, NV from May 20-23, 2011. This is a rare opportunity for commercial real estate property owners and their advisors to meet privately with all of Madison’s top brass – in Madison’s private conference rooms at Booth S541, at the corner of W Street and 54th Avenue in the South Hall — to review and gain insight of how best to improve the ROI of one or multiple properties. To schedule an appointment with Madison’s Leadership Team at RECON 2012, contact Keren Peters at 732-333-2471 or kpeters@madisoncres.com to coordinate a meeting date and time. Continue reading
There are numerous strategies in the marketplace for creating “headache free” real estate investments to be used as replacement property in like kind §1031 exchanges. Fort Properties, Inc. challenged the validity of this patent, claiming that AML’s strategy is unpatentable. The U.S. Circuit Court of Appeals for the Federal District agreed. Continue reading
Once a year, executives from the retail and commercial real estate industries gather for the largest retail real estate convention in the world. Hosted by ICSC, the International Council of Shopping Centers, the RECON Show is held in Las Vegas, NV in either May or June. This year, RECON will be held from May 22-26, 2011. Continue reading
In 2010, Congress added §7701(o) to the tax code captioned, “Clarification of the economic substance doctrine.” There has been some concern about what effect this new code section will have on § 1031 like kind exchanges. Continue reading
Having handled the sales and marketing efforts for 1031 Exchange companies for a number of years, I’ve personally seen the zenith-nadir-return of this valuable tax strategy.
Originally, real property exchanges were done typically by seasoned investors guided by savvy CPAs or attorneys. Continue reading
When two parties are closely related to each other, it may be tempting for one of them to incur a tax liability so that the other party can avoid a larger tax liability. Often this is legal. For example, many family trusts are established in part so that some investment income is earned by children in a low tax bracket rather than by their parents in a high tax bracket. But, because these strategies are so tempting, the tax code places limits on many of them. An important example of this is IRC § 1031(f), which permits exchanges of like-kind property between related parties, but requires both parties to hold on to their replacement property for two years after the exchange. If either party cashes out during the two-year holding period, then the IRS can disallow tax deferred treatment of both parties’ exchanges. Continue reading
