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The 1031 Exchange Experts 1031facts/articles

ADVANCED

Articles with advanced information about how 1031 exchanges work...

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NEW: 06.06  Because the TIC industry is so new, it still has a number of rough edges that you need to watch out for. The most important thing to watch for is the size of the sponsor. Read this article to find out WHY.

SIZE MATTERS When Purchasing A TIC (Tenant-In-Common) Interest - by Gary Gorman, in The AZREIA Advantage: Arizona Real Estate Investors Association newsletter, 06.06

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NEW: 05.17.06  “When I sell my Old Property, what happens to that basis?” “What about the depreciation I already took?” “If I fully depreciated my Old Property, will doing a 1031 exchange let me ‘freshen up’ my depreciation schedule?” “If I buy the New Property for $100,000, can I depreciate the whole $100,000?”

Handling Tax Basis in a 1031 Exchange - by Gary Gorman, in The Colorado Real Estate Journal, 05.17.06

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NEW: 04.05.06  Gary Gorman says a complex was on the market for $15 million, but was really worth about $12 million. "So it has to appreciate 50% before those people can break even..."

Joint Property Ownership Picks Up - by Jennifer S. Forsyth, in The Wall Street Journal, 04.05.06

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NEW: 03.15.06  The IRS has just proposed regulations with the goal to curtail the practice of holding exchange proceeds in commingled accounts. Read more here...

IRS Clamps Down on Commingled Accounts in 1031 Exchanges - by Gary Gorman, in The Colorado Real Estate Journal, 03.15.06

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Many QIs, CPAs, and attorneys believe you have to have debt. This is NOT, In fact, a requirement. Read more here...

The Role of Debt in a 1031 Exchange - by Gary Gorman, in The Colorado Real Estate Journal, 02.15.06

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One of the basic requirements of a 1031 exchange is that the proceeds must be held by an independent third party the IRS calls a qualified intermediary. Who is qualified to be an intermediary...?

Qualified Intermediary Issues in 1031 Exchanges - by Gary Gorman, in Realty Times, 01.20.06

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• Boot is the term that the IRS uses for the part of an exchange that is taxable. When a transaction overlaps the end of the year, the year of taxability becomes important....

What Year is “Boot” Taxable in a 1031 Exchange - by Gary Gorman, in The Colorado Real Estate Journal, 01.18.06

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• I recently spent an afternoon in a meeting with one of the people responsible for Section 1031 of the tax code for the IRS. Based on that meeting, what follows are my predictions of changes to look for during the next year...

Predictions of Things to Come for 1031 Exchanges - by Gary Gorman, in The Colorado Real Estate Journal, 12.21.05

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• The most common questions our firm gets are related to the required holding period for real estate with which clients intend to do a 1031 exchange. A good reason for all these questions is that there is more confusion about this issue than any other issue involving 1031 exchanges...

Holding Period Requirements for 1031 Exchanges - by Gary Gorman, in Realty Times, 11.10.05

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• There are 1031 exchange provisions that allow astute investors to move much-needed capital into hurricane regions in a manner that will result in a great investment. Read this to learn more...

1031 Exchanges Can Ease Burden From Natural Disasters - by Gary Gorman, in Realty Times, 10.27.05

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An investor needs to carefully choose an intermediary, which generally makes money off the interest accrued on clients' accounts. "There's no rules," says Gary Gorman, author of "Exchanging Up." "The intermediary is free to do whatever they want. They could buy Enron stock with that money...."

Intermediaries Cash In by Helping Property Investors Avoid Tax Hit - by Colleen Debaise, Dow Jones Newswires, The Wall Street Journal, 10.12.05

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Say three partners want to remain in real estate and do a 1031 exchange, but chose to go in three different directions. How can they do a 1031 exchange if the partnership is required to do the exchange as the same entity...?

More Partnership and LLC Issues In 1031 Exchanges - by Gary Gorman, in The Colorado Real Estate Journal, 10.05.05

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What started as an instrument to stimulate the economy worked during the Great Depression, explains Ramon F. Guerra, a consultant for the1031 Exchange Experts, LLC....

Capital Gains Without Tax - by Francisco Villar in Mundo Ejecutivo, 10.05

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• In a rush to beat the clock, investors may make hasty decisions and end up overpaying for a property, said Gary Gorman, whose business is up 50 percent over last year. "You're better off paying the tax" than overpaying, he said. "Don't let the tax tail wag the dog..."

Trading Spaces, and Deferring the Taxes - by Vivian Marino, in The New York Times, 09.25.05

Member ID: 1031experts
Password: 1031exp

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What do the terms "held for investment," or "used in a trade or business" mean? To find out what the IRS means by these terms (and especially to find out what they do NOT mean), read this article...

What Type of Properties Qualify For A 1031 Exchange? - by Gary Gorman, in Realty Times®, 09.05.05

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Nationwide, Toll-Free: 866-694-0204


click here to look into the "Exchanger Beware" series...

NEW: 04.05.06  Another sad story about a 1031 intermediary, bankrupt and accused of bilking investors of millions of dollars, illustrating yet again why savvy investors need to do their homework before choosing a QI...

A Sad New Tale of 1031 Intermediary Theft - by Gary Gorman, in The Colorado Real Estate Journal, 04.05.06

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• Your QI SAYS he segregates accounts, but how do you know? If he's dishonest enough to lie to you about his commingled accounts, will he be trustworthy to manage money on your behalf? Read this to learn how to spot an honest QI, and the disaster that might happen if you don't...

"Exchanger Beware..." Intermediary's Commingled Account Destroys Clients' 1031 Exchanges - by Gary Gorman, in The Colorado Real Estate Journal, 02.18.04

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• It's not the first time, and unfortunately it won't be the last: another QI gets caught in shady dealings with the client's money. Read here to learn what to look for, and what The Experts are doing about it on behalf of their clients...

Another 1031 Intermediary Steals Client's Exchange Money - by Gary Gorman, in The Colorado Real Estate Journal, 06.16.04

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• Once again, a bad QI made off with his client's money, and once again it was made possible by a commingled account. This article will show you how to avoid this situation by protecting yourself...

YET ANOTHER 1031 Intermediary Steals Client Exchange Funds - by Gary Gorman, in The Colorado Real Estate Journal, 10.06.04

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• Of course the bad QI gets punished by the judge when he plays hard and fast with his client's money, but the buck doesn't stop there... Read here to see how the innocent clients got punished, and what you can do to avoid this in your own situation...

Court Puts Commingled 1031 Exchange Funds at Risk - by Gary Gorman, in The AZREIA Advantage: Arizona Real Estate Investors Association newsletter, 09.04

• A property is sold, but one of the partners wishes to take their share of the cash and pay the tax, while the other partners want to do a 1031 exchange. This type of problem is not insurmountable if you work with a top-notch intermediary...

Partnership and LLC Issues In 1031 Exchanges - by Gary Gorman, in The Colorado Real Estate Journal, 09.03.05

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When seeking to defer taxes on a real-estate venture by putting proceeds toward a new deal, make sure you can prove the property is an investment...

Is Your Vacation Home Also an Investment? - by Jane Hodges, in The Wall Street Journal's The Real Estate Journal, 08.08.05

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"Flipping" is when you buy a property with the intent of selling it very soon after the purchase. Read here to see why this cannot be done with a 1031 exchange...

Why 'flipping' won't work in a 1031 exchange - by Nace Cohen, CPA, in Naples Daily News, 08.07.05

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A very popular way for investors to make money these days is to convert apartment buildings into condominiums. But, does this qualify for a 1031 exchange? This article will give you some answers....

Can You Exchange the Converted? - by Curtis Moore, Esq. and author Gary Gorman, in The Colorado Real Estate Journal, 08.03.05

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Free-lance Wall Street Journal writer Jane Hodges recently asked John McDonald, client of The 1031Experts, about the success of his exchange in the Florida Panhandle. Read more here...

Atlanta Investor Bets On the Florida Panhandle - by Jane Hodges, in The Wall Street Journal's The Real Estate Journal, 07.19.05

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This article examines whether you can perform a 1031 exchange on real estate contracts that have appreciated in value. Lots of people are doing this, but are they worth the risk?

Are Contracts Exchangeable? The "Contract Question" provides more questions than answers - by Curtis Moore, Esq., and Gary Gorman, in 1031News in The Colorado Real Estate Journal, 07.06.05

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There's a problem with the current real estate boom: what happens when you want to get off the merry-go-round and just put some of that real estate money in the bank? There are some exemptions, exclusions, and opportunities to minimize taxes on real estate profits...

Handling real estate profits can be taxing - by Terry Savage, Chicago Sun-Times Columnist, 06.27.05

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• Whether or not vacation homes qualify for 1031 exchanges is a hotly contested issue within the 1031 exchange community. Everyone has an opinion--so who is right? Read this article to learn the crux of the debate and which way the courts have decided...

Tax Court "Lays Ground" for 1031 Vacation Homes - by Tracey Wilson and author Gary Gorman, 06.27.05

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What happens if you need to buy New Property before you have sold your Old Property? The IRS prohibits this, but read this article to see how they let you around this rule....

What is a "Reverse" 1031 Exchange? - by Michael Eloranto, Esq., and Gary Gorman, in 1031News in The AZREIA Advantage, 06.05

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There's lots of conflicting information about the so-called "Year-and-a-Day" rule. So why all the confusion? This article will explain the situation as it stands, and show you why the confusion exists...

The 'Year-and-a-Day' Rule: Great advice, but it's not The Law - by Curtis Moore, Esq., in 1031News in The AZREIA Advantage, 05.05

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Depending on your situation, the IRS may now allow you to use your entire exclusion for your personal residence. Read this to see if your situation fits this criteria...

IRS Eases Rules for Combining Home Sale Exclusions and 1031 Exchanges - by Nace Cohen, Florida CPA, and Gary Gorman, in 1031News in The Colorado Real Estate Journal, 04.06.05

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You get slammed with taxes because the IRS doesn't allow fix-and-flips for 1031 treatment, but what can you do? -- Actually, plenty! Read this to find out how to structure a fix-and-flip situation to fall under the 1031 rules...

“Fix-and-Flips” ...Exchangeable? or Audit-Fodder? - by Curtis Moore, Esq., and Gary Gorman, in 1031News in The Colorado Real Estate Journal, 03.02.05

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• The IRS says you can't do a 1031 exchange with a relative, but actually it's a lot more nuanced than that. Read this article for a little more insight about what this means...

Everything's Relative ...except in 1031 exchanges - by Michael Eloranto, Esq., and Gary Gorman, in 1031News in Arizona Journal of Real Estate & Business, 03.05

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Is there, or is there not, a holding period for property involved in a 1031 Exchange? Read this to learn the answer, and find out why there is so much confusion on this issue...

The Mystery of the 1031 Holding Period - by Gary Gorman, and Curtis Moore, Esq., in 1031News in Arizona Journal of Real Estate & Business, 02.05

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BASIC

Articles  and videos with basic information about how 1031 exchanges work...

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• "One of the questions that every sales associate should ask the client in a listing presentation is whether this is [his or her] personal primary residence,” says Tracey Wilson, a consultant with The 1031 Exchange Experts, a Denver-based intermediary firm....

Trading Spaces: 1031 Exchanges - by Richard Westlund, Florida Realtor, 05.06

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NEW: 04.05.06  Former Secretary of State under President Ronald Reagan, General Alexander Haig interviews retired CPA and tax strategy author Gary Gorman on CNBC's Worlds Business Review....

World Business Review - with General Alexander Haig on CNBC, 10.23.05

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• In your 1031 exchange, you have 45 days to create a list of properties you may want to buy. If you put three properties or less on this list, there are no price limitations on these properties. However, if you put more than three properties on your list, there are very strict limitations. Read this article to learn more about these....

Identification Rules for 1031 Exchanges - by Gary Gorman -Retired CPA and Author, Realty Times, 12.22.05

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You can roll the gain from the sale of your old property over to your new property without paying tax by using Section 1031 of the Internal Revenue Code. To accomplish this roll-over, there are six easy steps you must follow....

Six Easy Steps to a 1031 Exchange - by Gary Gorman -Retired CPA and Author, Realty Times, 08.18.05

There are many articles by and about The 1031 Exchange Experts. See why they say we're writing the book on 1031 exchanges...
Bloomberg's Wealth Manager Forbes Forbes Colorado Real Estate Journal CREJ Buyers Investment Guide Florida Real Estate Journal FREJ Front Page 2

Arizona Journal of Real Estate & Business

The AZREIA Advantage

Bloomberg's Wealth Manager

Broker/Agent Magazine, Phoenix

Broker/Associate Magazine, Denver

CASAS de Colorado

CCIM The Voice

Chicago Real Estate News

Chicago
Sun-Times

CNN/Money

Colorado Real Estate Journal

CREJ Business Investors Guide

The Denver Business Journal

El Hispaño

Finance and Commerce

Financial Digest Real Estate Journal

Florida Real Estate Journal

Forbes

Lessengers Business Connection

The METROPOLITIAN Commercial Mortgage Watch

MSNBC.com

Mundo Ejecutivo

NABOR News

Naples Daily News

New England Real Estate Journal

New Jersey / Pennsylvania Real Estate Journal

New York Real Estate Journal

The New York Times

REJournal.com

Real Estate Educators Journal

Southwest Realtor

Vail Trail Real Estate Journal

Real Estate Journal - Wall Street Journal Guide to Property

Realty Times®

Section 1031 of the Internal Revenue Code allows you to roll the gain from the sale of your Old Property over to your New Property without paying tax. To do this however, there are six basic rules that you have to follow....

1031 EXCHANGES - from the book "Exchanging Up" - by Gary Gorman -Retired CPA and Author, Excerpt in Chicago Real Estate News, 07.05.05

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Garrett Sutton on wsradio.com's The Entrepreneur Magazine Legal Show interviews Gary Gorman about how section 1031 helps real estate investors. Listen in here...

1031 Interview with Gary Gorman - Garrett Sutton on The Entrepreneur Magazine Legal Show, wsradio.com, 04.14.05

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This Sean Healey Interview with Gary Gorman took place on AM 760 in Boulder Colorado on March 19, 2005. Listen in here...

1031 Interview with Gary Gorman - The ReaL Estate Advocate Radio Show with Sean Healey, 03.19.05
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Donna Fries' radio interview with Gary Gorman was the most informative radio program on real estate investing I have ever heard.

Gus Pyroulis
Real Estate Investor
Panama City, Florida

 
 

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