Twenty Things Real Estate Attorneys Can Do to Not Mess Up a Section 1031 Exchange (Part 2: Items 11–20)

The Practical Tax Lawyer, Vol. 36, p. 3, (Sep. 2020)

Brooklyn Law School, Legal Studies Paper No. 648

9 Pages Posted: 28 Oct 2020

Date Written: October 23, 2020

Abstract

The article linked below is the second installment of a two-part article identifying issues that can mess up section 1031 exchanges. The article addresses topics that should help attorneys avoid the horror stories of poorly structured drop-and-swap transactions or TIC arrangements. Exchanges also get thwarted by the related-party rules or stall because of misinformation regarding those rules. Even seemingly mundane aspects of a transaction, such as a closing statement, may be the source of tax issues in a section 1031 exchange and can benefit from being worked through thoughtfully. A review and awareness of such issues will help improve the practice in this area and save property owners tax dollars.

This second installment of the article covers the following 10 items:

Item 11: Don't drop the ball on a drop-and-swap

Item 12: Know what a TIC is and isn't

Item 13: Know that an S corporation is not a tax partnership

Item 14: Recognize you're not a DST, NNN, or TIC broker

Item 15: Use caution if replacement property comes from a related party

Item 16: Know that serial exchanges are an exception to the general related-party prohibition

Item 17: Selling to a related party is probably fine

Item 18: Know when the exchange period ends

Item 19: Follow the money: replace value, replace equity

Item 20: Have the best section 1031 people in your contacts folder

Suggested Citation

Borden, Bradley T., Twenty Things Real Estate Attorneys Can Do to Not Mess Up a Section 1031 Exchange (Part 2: Items 11–20) (October 23, 2020). The Practical Tax Lawyer, Vol. 36, p. 3, (Sep. 2020), Brooklyn Law School, Legal Studies Paper No. 648, Available at SSRN: https://ssrn.com/abstract=3717800

Bradley T. Borden (Contact Author)

Brooklyn Law School ( email )

250 Joralemon Street
Brooklyn, NY 11201
United States

HOME PAGE: http://www.brooklaw.edu

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