1031 Exchanges - A case study of IRS rules - Posted by Ben

Posted by CAW on January 05, 2002 at 02:16:34:

My accounant tells me that the IRS is suspicious of any 1031 that involves family members. So if a family member is going to be involved in any way, be extra careful that the exchange is done exactly by the book.

I sincerely suggest that if you are going to do much real estate that you get an accountant that specializes in real estate and knows the tax law that applies to real estate.

1031 Exchanges - A case study of IRS rules - Posted by Ben

Posted by Ben on January 04, 2002 at 01:34:31:

I have the following questions on 1031 exchanges and will
ask you fine and knowledgeable people for your advice:

  1. In a 1031 exchange, is there any problem with the IRS rules,
    if the property up for sale is sold to a family member (i.e.
    father sells to grown son).
  2. Regarding question one, what if the son has a mortgage
    that is either co-signed by the father or father carries part or
    all of the mortgage on the sale, is there any problem with
    this arrangement?
  3. If the property being sold is in a proprietorship (sched C)
    can the newly purchased property be bought in a newly formed
    corporation, as long as the proprietor is a shareholder? Or
    does the proprietor’s property have to remain as a proprietor
    for 1031 tax deferral privilege?
  4. Lastly, what is the best IRS publication to get regarding
    detailed 1031 information? Can you suggest other “free” web
    sites or publications on 1031 exchanges?

How’s that for some heavy duty stuff? Thanks in advance for
your help! What a great site you have.