In this episode of Everything Real Estate hosted by Realtor Randy Herman, our Northern 1031 Exchange Senior Vice President, John Starling, takes a deep dive into the basics of 1031 Exchange. He discusses the advantages of using 1031 to defer taxes, the types of properties that qualify and ways to structure an exchange, including forward, reverse and improvement exchanges.

In June 2021, Northern 1031 Exchange Vice President, Michele Fitzpatrick, spoke with Amanda Farrell of PropLogix. Fitzpatrick discussed the 1031 Exchange process and how title agents can assist their clients through the transaction. 

Taxpayers can use both a 1031 Exchange AND the 121 primary tax exemption to create “The Great Real Estate Tax Break.” In an article written by John Starling, Northern 1031 Exchange Senior Vice President, he outlines detailed examples of properties that could combine these two tax codes for maximum savings.

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. 

Exchanging in a “hot” real estate market is just as relevant today, as it was in 2017 when Northern 1031 Exchange Senior Vice President, John Starling, wrote this article for the New England Real Estate Journal. Selling a property in the current hot real estate market is the easy part. Buyers are plentiful and offers are high. However, securing a replacement property to buy in a hot market is where it gets tricky.

Lately, the Tax Reform Bill and proposed cap on Like Kind Exchanges (LKEs) has been making headlines. This cap will impact real estate investors who utilize exchanges to grow and diversify their businesses. As Congress continues to debate the Tax Reform Bill, the benefits of 1031 exchange continue to mount. Like many other financial institutions, Northern Bank is working on understanding the Bill’s impact on investor clients and addressing their concerns.

Did you know that summer is the busiest season in real estate? Northern Bank's Michele Fitzpatrick was recently invited to present a CE credit class for Cotter Law and the WFG Real Estate School, where the hot real estate market was the focal point of discussion. She was joined by Attorney Elizabeth Cotter of Cotter Law and Lisa Stills from WFG National Title Insurance Company.

We have focused on who can utilize a 1031 Exchange, what types of properties qualify, when is the best time to exchange and most often, how the process works. However, it is equally as important to understand WHY investors exchange, so you can better determine if an exchange is right for your business.

Let's explore two 1031 Exchange Related Party questions related to buying and selling properties. (1) Can you sell your property to a related party and still qualify for a 1031 tax deferred exchange? (2) Can you buy your replacement property from a related party and still qualify for a 1031?