1031 Exchange question - Posted by Chris - Fl

Posted by Michael Morrongiello on October 29, 2001 at 13:20:03:

You really need competent Tax advice here…

If I understand you correctly, you have sold a property that you owned personally and was used for investment purposes by taking advantage of IRC section 1031. The proceeds of the sale of this investment property must be held by a third party so that you do not have “constructive receipt” of these funds…

Now, you wish to designate or “target” a replacement investment property or two, three, etc. so that you can complete your tax defferred exchange…

At the very least you may be able to complete your exchange into the new replacement property(s). and then look into doing what is known as a “Capital Contribution” of this asset to the corporation that you have set up. This is one way you can probably get the title to the property and the asset into a corporate entity. As for whether or not you will be charged “for the gains”… That is for the tax practioner to address or perhaps you can direct this issue further to John Hyre Jhyre@bright.net who I believe deals on a regular basis in tax matters.

To your success,
Michael Morrongiello

1031 Exchange question - Posted by Chris - Fl

Posted by Chris - Fl on October 29, 2001 at 11:46:33:

I have a 1031 Exchange question for you guys. My wife and I purchased a home in our names and it later became a rental. We recently sold this home and have been dealing with a 1031 Exchange agent. He’s looking into this for me but I thought I’d run it past here also. I recently set up an S Corp to hold my real estate investments. Is there anyway I can move the new properties that I will acquire through the Exchange into the S Corp and NOT be charged for the gains? Any insight would be greatly appreciated!