Category: Video Series 1031 University

Navigating a 1031 Exchange in a low-inventory market or when lending costs are high can be challenging, especially for Exchangers looking to reinvest solely into property improvements. This video explores how a 1031 Exchange can be structured when making https://www.accruit.com/blog/can-taxpayer-use-exchange-proceeds-build-p… on related party property while complying with IRC §1031 requirements.
A critical aspect of this process is ensuring that the https://www.accruit.com/blog/same-taxpayer-requirement-1031-tax-deferre… Taxpayer owns both the Replacement Property and the ground lease while also transferring ownership of the Relinquished Property before the exchange begins. Since a long-term leasehold interest of 30 or more years is considered like-kind to a fee-simple interest, an Exchange Accommodation Titleholder (EAT) plays a vital role in holding the leasehold interest during the buildout and improvements. Ultimately, the Exchanger acquires the ground lease and tentative improvements from the accommodator.
The key takeaway is that a long-term leasehold interest of at least 30 years qualifies as like-kind to tentative improvements. If an Exchanger owns both the Relinquished and Replacement Properties, partnering with a 1031 Exchange expert like Accruit is essential to ensure the transaction is properly structured. In this video, we break down the process and key considerations to help Exchangers navigate this type of exchange successfully.

Navigating a 1031 Exchange in a low-inventory market or when lending costs are high can be challenging, especially for Exchangers looking to reinvest solely into property improvements. This video explores how a 1031 Exchange can be structured when making https://www.accruit.com/blog/can-taxpayer-use-exchange-proceeds-build-p… on related party property while complying with IRC §1031 requirements.
A critical aspect of this process is ensuring that the https://www.accruit.com/blog/same-taxpayer-requirement-1031-tax-deferre… Taxpayer owns both the Replacement Property and the ground lease while also transferring ownership of the Relinquished Property before the exchange begins. Since a long-term leasehold interest of 30 or more years is considered like-kind to a fee-simple interest, an Exchange Accommodation Titleholder (EAT) plays a vital role in holding the leasehold interest during the buildout and improvements. Ultimately, the Exchanger acquires the ground lease and tentative improvements from the accommodator.
The key takeaway is that a long-term leasehold interest of at least 30 years qualifies as like-kind to tentative improvements. If an Exchanger owns both the Relinquished and Replacement Properties, partnering with a 1031 Exchange expert like Accruit is essential to ensure the transaction is properly structured. In this video, we break down the process and key considerations to help Exchangers navigate this type of exchange successfully.

In this educational video, we take a close look into the use of easements and long-term leases as Relinquished Property in a 1031 Exchange, highlighting the key requirements for these property types to qualify as like-kind property. Requirements include easements must generally be perpetual and require careful attention to the terms of the agreement. Similarly, leasehold interests often need to be structured as long-term agreements with specific provisions to meet 1031 qualifications.
We also discuss additional considerations for https://www.accruit.com/blog/often-overlooked-section-1031-property-rig… leasehold interests with an emphasis that the lessee, not the lessor, holds the exchangeable interest. When all considerations are met Exchangers are able to utilize proceeds from the sale of easements and long-term leases as Relinquished Property to acquire Replacement Property in a 1031 Exchange.
 

In this educational video, we take a close look into the use of easements and long-term leases as Relinquished Property in a 1031 Exchange, highlighting the key requirements for these property types to qualify as like-kind property. Requirements include easements must generally be perpetual and require careful attention to the terms of the agreement. Similarly, leasehold interests often need to be structured as long-term agreements with specific provisions to meet 1031 qualifications.
We also discuss additional considerations for https://www.accruit.com/blog/often-overlooked-section-1031-property-rig… leasehold interests with an emphasis that the lessee, not the lessor, holds the exchangeable interest. When all considerations are met Exchangers are able to utilize proceeds from the sale of easements and long-term leases as Relinquished Property to acquire Replacement Property in a 1031 Exchange.
 

In this educational video, we take a close look into the use of easements and long-term leases as Relinquished Property in a 1031 Exchange, highlighting the key requirements for these property types to qualify as like-kind property. Requirements include easements must generally be perpetual and require careful attention to the terms of the agreement. Similarly, leasehold interests often need to be structured as long-term agreements with specific provisions to meet 1031 qualifications.
We also discuss additional considerations for https://www.accruit.com/blog/often-overlooked-section-1031-property-rig… leasehold interests with an emphasis that the lessee, not the lessor, holds the exchangeable interest. When all considerations are met Exchangers are able to utilize proceeds from the sale of easements and long-term leases as Relinquished Property to acquire Replacement Property in a 1031 Exchange.
 

The sale of easements, such as those for https://www.accruit.com/blog/renewable-energy-1031-exchanges-wind-farms… energy generation, may qualify as the sale of a real property interest under IRC Section 1031. In this video, https://www.accruit.com/about/meet-team/max-hansen”>Max Hansen, Managing Director at Accruit, discusses how Exchangers can leverage proceeds from these sales as Relinquished Property to complete a 1031 Exchange, reinvesting in other real estate for investment purposes or productive use in a trade or business.
We also touch on the ability for Exchangers to use the proceeds to acquire nearly any type of investment or business use real estate based on the broad definition of like-kind, such as single/multi-family rentals, self-storage facilities, commercial buildings, and more.

The sale of easements, such as those for https://www.accruit.com/blog/renewable-energy-1031-exchanges-wind-farms… energy generation, may qualify as the sale of a real property interest under IRC Section 1031. In this video, https://www.accruit.com/about/meet-team/max-hansen”>Max Hansen, Managing Director at Accruit, discusses how Exchangers can leverage proceeds from these sales as Relinquished Property to complete a 1031 Exchange, reinvesting in other real estate for investment purposes or productive use in a trade or business.
We also touch on the ability for Exchangers to use the proceeds to acquire nearly any type of investment or business use real estate based on the broad definition of like-kind, such as single/multi-family rentals, self-storage facilities, commercial buildings, and more.

The sale of easements, such as those for https://www.accruit.com/blog/renewable-energy-1031-exchanges-wind-farms… energy generation, may qualify as the sale of a real property interest under IRC Section 1031. In this video, https://www.accruit.com/about/meet-team/max-hansen”>Max Hansen, Managing Director at Accruit, discusses how Exchangers can leverage proceeds from these sales as Relinquished Property to complete a 1031 Exchange, reinvesting in other real estate for investment purposes or productive use in a trade or business.
We also touch on the ability for Exchangers to use the proceeds to acquire nearly any type of investment or business use real estate based on the broad definition of like-kind, such as single/multi-family rentals, self-storage facilities, commercial buildings, and more.

Can Exchangers go beyond the 180-day timeline in a reverse exchange? The short answer is yes, but only under specific conditions. To extend the timeline, the transaction must be structured as a “Non-Safe Harbor” Specialty Reverse Transaction. In this structure, an Exchange Accommodation Titleholder (EAT) holds the title to the property, typically the Replacement Property, within a Special-purpose Entity (SPE). Standard Reverse Exchanges, which follow IRS safe harbor rules, do not allow for this extension.
Exceptions to the 180-day limit are often discussed in the context of parking arrangements, where practical challenges like delays in injecting exchange value into property improvements can arise. While case law and tax authority support extending parking arrangements under an EAT in certain scenarios, it’s important to note that once the Relinquished Property is sold, the forward exchange timeline begins, and the strict 180-day limit to acquire Replacement Property applies.
In this educational video, understand how these exceptions work in specific Reverse 1031 Exchange strategies.

Can Exchangers go beyond the 180-day timeline in a reverse exchange? The short answer is yes, but only under specific conditions. To extend the timeline, the transaction must be structured as a “Non-Safe Harbor” Specialty Reverse Transaction. In this structure, an Exchange Accommodation Titleholder (EAT) holds the title to the property, typically the Replacement Property, within a Special-purpose Entity (SPE). Standard Reverse Exchanges, which follow IRS safe harbor rules, do not allow for this extension.
Exceptions to the 180-day limit are often discussed in the context of parking arrangements, where practical challenges like delays in injecting exchange value into property improvements can arise. While case law and tax authority support extending parking arrangements under an EAT in certain scenarios, it’s important to note that once the Relinquished Property is sold, the forward exchange timeline begins, and the strict 180-day limit to acquire Replacement Property applies.
In this educational video, understand how these exceptions work in specific Reverse 1031 Exchange strategies.