There has been a large increase in the number of tax-free exchanges. At our recent annual meeting of the Federation of Exchange Accommodators in Denver all the members reported a large increase in exchanges, especially compared to the years after the real estate bust. Many states have created laws for monitoring Qualified Intermediaries. Several states […]
Category: Blog
1031 Tax-Free Exchange
The exchange of properties for other properties directly between taxpayers was a standard procedure before the 1985 tax law exchange which provided for deferred exchanges. It is still possible to swap properties with another taxpayer. The values must be equal and if there is any boot or cash involved to balance the equities it makes […]
Warning: 1031 tax-free exchanges
There is a new law in California,Washington, Colorado and several other states requiring a Qualified Trust or a Qualified Escrow. Recently a client/friend called and asked if I would intervene in a problem exchange. The exchange had been started and when the taxpayer inquired about his funds they were not with the intermediary, they had been sent to […]