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Can you sell your property to a related party and still qualify for a 1031 tax deferred exchange? Can you buy your replacement property from a related party and still qualify for an exchange? John Starling, Senior Vice President at Northern 1031 Exchange, answers these important questions in a 2018 edition of the New England Real Estate Journal.
Starling discusses what the definition of a related party is as determined by the IRS, along with the rules that must be followed to exchange to/from a related party. He further outlines when a related party exchange is allowed and scenarios when it is disallowed. The IRS is adamant that there are only limited exceptions and it has been successful in challenging related party exchanges, so it pays to make sure you are well-versed in these guidelines before deciding on a related party exchange.
As tax season approaches, it’s an important time to get your finances in order—but it’s also a peak period for cybercriminal activity. Scammers frequently exploit this time of year by sending fraudulent emails or making phone calls that appear to come from legitimate tax-related organizations.
For real estate investors, a 1031 Exchange can be a powerful tax-deferral tool, but in order to benefit, you must meet stringent IRS rules that leave little room for compromise. That’s one of the reasons it is so important to work with an experienced Qualified Intermediary (QI), who understands the complex 1031 Exchange process and IRS requirements.
In today’s business environment, trust is essential. Unfortunately, it’s also what fraudsters target first. One of the fastest-growing threats facing businesses involves spoofed communications and online account takeover scams.
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