IRS 1031 Exchange Fact Sheet

On March 5th, the IRS released a new ‘Fact Sheet’ (#21 in the Tax Gap Series) on 1031 exchanges. The information contained it in is fairly basic and doesn't provide anything too earth shattering to those who've done exchanges. It does note the incidental increase in Qualified Intermediary bankruptcies. It does also mention taxpayers need to be wary of schemes involving non-qualifying exchanges of vacation or second homes and 'promotors' that allow constructive receipt or refer to a 1031 exchange as "tax-free".

Finally, they make mention a very important aspect...consult with a tax professional for additional assistance. In combination with a good qualified intermediary, a real estate attorney tax or accounting professional and professional real estate agent should be included early on to ensure the exchange is structured properly and legitimately processed.

To see the full the full IRS Fact Sheet, see the Like Kind Exchange Fact Sheet located on our website.