IRS Regulations for Reverse Exchanges Under Section 1031

David M. Gorenberg, CES® |
Corporate & Institutional
Real estate investment trusts REITs. Shopping cart and model of house.

Taxpayers often look for opportunities to sell a property they are no longer interested in and purchasing a new property. Many will take advantage of a §1031 tax-deferred real estate exchange.However, according to the Internal Revenue Service Revenue Procedure 2000‑37, taxpayers can also consider a reverse exchange.

Read More...


Refinancing in a 1031 Exchange to Gain Equity

David M. Gorenberg, CES® |
Corporate & Institutional
tall-skyscrapers-connected-by-data-cloud.JPG

Taxpayers often wish to pull money out of their properties in an effort to take advantage of the increased equity. One way to do this is by refinancing the property with a third-party lender (a §1031 exchange), which frees up what would otherwise be captive equity. However, this can become complicated. It is important to remember that any cash received or debt relieved in the course of a §1031 exchange is considered “boot” and is subject to taxation.

Read More...


IRS Extends Section 1031 Exchange Deadlines

David M. Gorenberg, CES® |
Corporate & Institutional
Futuristic skyscrapers in New York City

Due to the COVID-19 pandemic, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27, 2020. Among the provisions of the Act, was the deadline extension for filing 2019 tax returns from April 15, 2020 to July 15, 2020.However, the CARES Act made no mention of extensions for taxpayers with a Section 1031 exchange already in progress. Nevertheless, Rev. Proc.

Read More...