1031 Form.org: FAQs Questions For 1031 Exchange & Compare Intermediaries Help

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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 Compare Intermediaries 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

Identifying the Replacement Property
Tax Advantages
Tenant In Common
Doing a Partial Exchange
Tax Deferred Exchanges

You may be wondering how long Section 1031 has been around for.

1031 Exchange has been around for a long time. In fact, it is reported to have begun as far back as the 1920s.

1031 Related News

Deferred Exchanges Of Like Kind Property
Like-kind property can be a variety of business property, not just real estate; it can be any property held for productive use in a trade or business or for investment.

Funds Used During Exchanges of Like-Kind Property
The Internal Revenue Code (Code) allows taxpayers to engage in like-kind exchanges of business property under section 1031.

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Terms about 1031

Ad Valorem Tax

Definition:
A tax levied in proportion to the value of the thing(s) being taxed. Exclusive of exemptions, use-value assessment laws, and the like, the property tax is an ad valorem tax

Tax Roll

Definition:
A list containing the descriptions of all parcels in the county, the names of the owners (or those receiving the tax bill), assessed values and tax amounts.

Tax Base

Definition:
Assessed valuation of real property, which is multiplied by the tax rate to determine the amount of tax due.

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FAQs Questions about 1031 Exchange

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 are some of the more common types of contractual transfers of real estate that are not exempted from transfer tax?

Answer:

Property transferred as part of a like-kind exchange under Sec.1031 of the IRC or as part of a land swap are subject to transfer tax based on the fair market value of the property. Transfer tax is payable on each property transferred.

Question: Can transfers of real estate between a business entity and its owner be considered a gift?

Answer:

No. Such transfers are not gifts because the owner receives consideration in exchange. The consideration comes either in the form of additional shares (or other indications of ownership interests) in the business entity and the business will have additional assets as a result of the transfer, or in the form of the enhanced value of the owner’s shares (or other ownership interests) as a result of the transfer. Any transfer of real estate between a business and it’s owners is taxable based on the fair market value of the assets transferred.

Did You Know ?
You may be wondering how long Section 1031 has been around for. 1031 Exchange has been around for a long time. In fact, it is reported to have begun as far back as the 1920s.

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