In the world of 1031 Exchanges, there are a multitude of circumstances that investors find themselves in with property. While traditional, forward 1031 Exchanges are the most common, situations vary to which more nuanced forms of exchanges may need to be deployed. This blog will cover three types of 1031 exchanges that are not as well-known, including, Partial, Multi-Property, and Improvement Exchanges.
Partial 1031 Exchange
What is a Partial 1031 Exchange? Can you do a partial 1031 Exchange? Also known as a split exchange, a partial 1031 Exchange allows the property owner to exchange a portion of the sales proceeds from their Relinquished Property, and keep a portion for themselves, resulting in a partially tax deferred transaction. It is important to understand that tax will need to be paid on any money that is not reinvested into the Replacement Property. For example, if the Relinquished Property was sold for $1 million and the property owner only wants to reinvest $700,000 in a Replacement Property and pocket the $300,000 for a partial 1031 Exchange, they may do so. In keeping the cash, capital gains and other taxes will need to be paid on the $300,000. The $300,000 leftover, un-invested funds are known as info@accruit.com, or live chat with us on our website.
The material in this blog is presented for informational purposes only. The information presented is not investment, legal, tax or compliance advice. Accruit performs the duties of a Qualified Intermediary, and as such does not offer or sell investments or provide investment, legal, or tax advice.
Lesser Known 1031 Exchanges
