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Download as a PDF Seller carryback financing can be a useful tool in a real estate sale, but it requires careful handling when the transaction is part of a 1031 exchange. If the seller carry back note is intended to be included in the tax-deferred exchange, the promissory note and related security instruments (e.g., deed […]
Download as a PDF 1031 tax deferred exchange transactions can be powerful tax-deferral strategies for real estate investors and property owners. However, when a sale or purchase of real property involves a related party, the 1031 exchange becomes significantly more complex and is subject to special Internal Revenue Service (IRS) requirements. Like kind exchange transactions […]
Download as PDF Real estate markets move quickly. Sometimes the perfect investment property (replacement property) is located long before the investor finds a buyer for their current investment property (relinquished property). A reverse 1031 exchange offers a powerful solution to this timing problem. This tax planning strategy allows investors to acquire their new investment property […]
Download as PDF When a real estate investor identifies the perfect property to buy (replacement property) but has not yet sold their current real property (relinquished property), standard tax-deferred exchange rules can present a significant hurdle. The Internal Revenue Service (IRS) does not allow taxpayers to own both the relinquished and replacement properties at the […]
Closing investment real estate transactions can be particularly challenging during a rising interest rate environment, an economic downturn, a tight credit market, or other distressed real estate market conditions. Lenders frequently impose stricter borrowing requirements during these times. Consequently, buyers (borrowers) may no longer qualify for financing and therefore not be able to purchase investment […]
