Capitol 1031 Exchange.com: FAQs Questions For 1031 Exchange & Tax Deferred Exchanges Help

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What Is 1031? also referred to as a 1031 Exchange or Like-Kind Exchange, and falls under Section 1031 of the Internal Revenue Code. This tax section deals with property value in sale of business or trades and other like sales. Contact us to get your property exchange prepared & filed by a qualified Tax Deferred Exchanges professional. Need Help with 1031 issues ? Then contact us now >

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§ 1031. Exchange of property held for productive use or investment...Read more law >

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Doing a Partial Exchange
Land Exchange
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Tax Redemption

There are some things that Section 1031 doesn't apply to.

Section 1031 does not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness, or certain other assets.

1031 Related News

Treasury And IRS Announce Guidance On Like-Kind Home Exchanges
In the case of business property, a property owner generally would not recognize gain upon the exchange of the business property for replacement property of a like kind.

Tri-Valley Bank Partners With NES To Offer 1031 Tax-Deferred Exchange Products
NES is a Qualified Intermediary providing an industry-leading suite of 1031 tax-deferred exchange products for individual investors through major US corporations

Read More News >

Terms about 1031

Carrying Charges

Definition:
Various costs that are incidental to ownership (e.g., taxes insurance costs and maintenance expenses).

Recapture

Definition:
That portion of the gain from the sale of real estate that is taxed at ordinary income tax rates. Calculated as the difference between the accelerated depreciation taken and the straight-line depreciation that would have been allowed.

Assessor

Definition:
A government official who is responsible for determining the value of a property for the purpose of taxation.

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FAQs Questions about 1031 Exchange

Question: What is a non-contractual transfer?

Answer:

A non-contractual transfer is a completed transfer of real estate or of an interest in real estate made as a gift, where no consideration is paid. The transferor must have relinguished control of the real estate or interest in real estate.

Question: Can transfers of real estate between a business entity and its owner be considered a gift?

Answer:

No. Such transfers are not gifts because the owner receives consideration in exchange. The consideration comes either in the form of additional shares (or other indications of ownership interests) in the business entity and the business will have additional assets as a result of the transfer, or in the form of the enhanced value of the owner’s shares (or other ownership interests) as a result of the transfer. Any transfer of real estate between a business and it’s owners is taxable based on the fair market value of the assets transferred.

Question: Is a transfer into or out of an irrevocable trust taxable?

Answer:

It depends. If the transfer is a gift, it is not taxable. If it is not a gift, the same rules apply as for all other contractual transfers.

Did You Know ?
There are some things that Section 1031 doesn't apply to. Section 1031 does not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness, or certain other assets.

Need to get more information about Tax Deferred Exchanges & 1031 issues? Then click here to contact us.