Reverse Exchange and End-of-Year tax benefits of IRC 1031 exchanges

Thursday, December 03, 2015 by Joe Schwartz

Mike Brady, lead counsel and 1031 exchange specialist, gave an in-depth look into the complex world of Reverse Exchanges. Reverse Exchanges are excellent vehicles for investors to defer taxes when more flexibility is required in the exchange. In a normal Two Party Exchange, the relinquished property is sold and within 180 days the taxpayer must close on the replacement property. However, in a Reverse Exchange, the relinquished property is not sold until after the replacement property is bought, which requires far more preparation to ensure that the exchange remains valid. In addition, Mike discussed another scenario where 1031 funds can be used to make improvements on the replacement property using what is known as an Improvement Exchange. Mike also discussed 1031 strategies for maximizing tax benefits at the end of a tax year, such as deadline issues and tax year straddles.

This dynamic presentation was very well received by the crowd of attorneys and investors who attended, and many had insightful questions that Mike addressed during the seminar.

Each 1031 Exchange brings new challenges and benefits and many are colored in gray rather than black and white. For more information or to speak to Mike Brady call 7187.252.4200, or click here to submit a questions directly to our 1031 experts.

Click here for seminar material