The 1031 Adviser: Converting 1031 Replacement Property into a Principal Residence   It’s not uncommon for an investor to convert a property held for business, trade or investment into a principal residence. Change in investment potential of the property, or a desire to get out of the landlord business, might make the investor decide to

Expert Advice

Second Homes and the 1031 Exchange

Second Homes and the 1031 Exchange A 1031 exchange can be used to defer capital gain and depreciation recapture taxes on the sale of property held for business, trade or investment. The guidelines for a successful exchange must be followed carefully or the IRS may disallow the exchange. I am often asked whether a property


What is a tax deferred 1031 exchange?

What is a tax deferred 1031 exchange? A deferred 1031 exchange is a tax-savvy strategy provided by the Internal Revenue Code, that allows real estate investors to defer capital gains and depreciation recapture taxes when sell and the buy investment property. This can be a valuable and powerful tool for investors looking to accumulate wealth,

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An Exchanger’s Guide to Boot

A like-kind or 1031 exchange is a powerful tax strategy to create enormous wealth over an investor’s lifetime. We discuss the rules regularly here in this forum, but one of the most common questions that causes confusion is the concept of “boot.” Let’s start with the basics, what is boot? Most of us have traded in a

Every state in the union – other than Pennsylvania – conformed its tax code to the IRS code to permit residents to take advantage of tax-deferred exchanges under state tax law.  Now, finally, Pennsylvania has changed its law to recognize tax-deferred exchanges that comply with federal law. Previously, Pennsylvania residents deferring gains under federal law