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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 Investment Property 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 >

Related Hot Topics

    • The Internal Revenue Code
    • Tax Codes
    • Doing a Partial Exchange
    • Indirect Costs
    • Tenant In Common


    One property is not always exchanged for just one other property.

    Two or more types of real estate can be exchanged for one replacement type of real estate. Also, one type of real estate can be exchanged for two or more types of real estate.

FAQs Questions about 1031 Exchange


Question: Are transfers involving revocable trusts taxed differently?

Answer:

Transfers involving revocable trusts are taxable, but the Department will not challenge the price or consideration on which the tax is calculated, even if it was below FMV, if the beneficial interests in the trust are represented by non-transferable shares and the trust was set up and funded for estate-planning purposes as a testamentary substitute. The only transfers into such a revocable trust that qualify for the tax treatment described above are those that are conveyed by the creator of the trust into the trust and are designated under the trust’s terms to be conveyed to the trust beneficiaries as a result of the creator’s death. The only transfers out of such a revocable trust that qualify for the tax treatment described above are those that are conveyed directly to the beneficiaries of the trust as a result of the creator’s death. Any other transfers into or out of the trust are taxable on the FMV of the property transferred. Transfers out of a revocable trust that qualify for one of the exemptions specified in RSA 78-B:2 are, of course, exempt.




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.




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.



Did You Know ?
One property is not always exchanged for just one other property.

Two or more types of real estate can be exchanged for one replacement type of real estate. Also, one type of real estate can be exchanged for two or more types of real estate.

Need to get more information about Investment Property & 1031 issues? Then click here to contact us.