Recent Articles

IRS TO PROVIDE RELIEF !!!

Stephen A. Wayner
December 29, 2008 17:24

In an article written in last weeks Wall Street Journal, Tom Herman reports: "IRS officials say they are speeding up efforts to provide relief for homeowners in financial distress. The Internal Revenue Service has developed an "expedited process" to make...In an article written in last weeks Wall...

Three Optimization Strategies For Your 1031 Exchange

Stephen A. Wayner
December 17, 2008 18:26

I frequently get asked how many properties one can sell, or for that matter replace (purchase), when doing a Section 1031 tax deferred exchange. You are going to love this answer--the investor can sell (relinquish) ANY number of properties and...I frequently get asked how many properties one can...

Bowling Alley Misconception

Stephen A. Wayner
December 17, 2008 18:25

One of our exchanger’s is selling (exchanging) a bowling alley for an interest in a shopping center. The taxpayer (Exchanger) was very upset because he was told by a “professional” that he had to conclude a simultaneous transaction in order...One of our exchanger’s is selling (exchanging) a bo...

WHAT HAPPENS IF I HAVE ALREADY SIGNED A CONTRACT TO SELL?--IS IT TOO LATE TO STILL HAVE A SECTION 1031 TAX DEFERRED EXCHANGE?

Stephen A. Wayner
December 12, 2008 17:34

"It's too late, it's too late...." Ah I remember that song of so long ago. But the correct answer is: "IT'S NOT TOO LATE"!! As long as the taxpayer has not closed on the property and title has not been..."It's too late, it's too late...."  Ah I remember that song of so long ago.  But...

DO I HAVE TO SPEND ALL OF THE PROCEEDS I RECEIVE FROM A 1031 EXCHANGE ON A REPLACEMENT PROPERTY?

Stephen A. Wayner
December 12, 2008 17:29

No, but you will be taxed on the portion of those funds not used towards the purchase of the replacement property on the Section 1031 exchange. Let's look at the following example: Mary Lou, our taxpayer, originally purchased an investment...No, but you will be taxed on the portion of those funds...

CAN I PURCHASE A REPLACEMENT PROPERTY BEFORE SELLING MY EXISTING PROPERTY AND STILL CONCLUDE A 1031 EXCHANGE?

Stephen A. Wayner
December 12, 2008 17:28

YES YOU CAN !! You can close on the purchase of your replacement property first and then sell the property(ies) you want to divest yourself of. This type of transaction is called a Reverse Exchange. It is very complicated and...YES YOU CAN  !!    You can close on the purchase of...

WHAT HAPPENS WHEN A TAXPAYER FINANCES PART OF THE SALE OF THE RELINQUISHED PROPERTY?

Stephen A. Wayner
December 05, 2008 16:53

A taxpayer's CPA called last week and said he had a problem. His taxpayer wanted to sell its investment property---but the only way it could be sold is if the taxpayer took back financing towards the purchase price. Most of...A taxpayer's CPA called last week and said he had a problem.  ...

CAN I GIVE LEGAL ADVICE ON A SECTION 1031 TAX DEFERRED EXCHANGE?

Stephen A. Wayner
December 05, 2008 16:52

This question comes up all the time. Most of you are aware that I am in fact an attorney. For more than 35 years, I have practiced as a dirt (real estate) lawyer, with some corporate law thrown in. So...This question comes up all the time.  Most of you are aware that I am in fact an...

DO I HAVE TO REINVEST IT ALL?

Stephen A. Wayner
November 24, 2008 20:41

What did I mean by that question? Let me use as a transaction that occurred this morning. "Mary" originally purchased a condominium as an investment 14 years ago, at the price of $137,0000. The property went up and down in...What did I mean by that question?  Let me use as a transaction that...

IS THE TAXPAYER RESTRICTED AS TO WHERE THEY CAN PURCHASE THEIR REPLACEMENT PROPERTY?

Stephen A. Wayner
November 19, 2008 18:01

A CPA from Ohio just asked the above question and it is a good one to present in this blog. A taxpayer can purchase the replacement property in any state in the Union. Does Puerto Rico qualify as a State?...A CPA from Ohio just asked the above question and it is a good one to present in this...