1031 Securities.com: FAQs Questions For 1031 Exchange & Tax Deferred Exchanges Help

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What Is 1031? also referred to as a 1031 Exchange or Like-Kind Exchange, and falls under Section 1031 of the Internal Revenue Code. This tax section deals with property value in sale of business or trades and other like sales. Contact us to get your property exchange prepared & filed by a qualified Tax Deferred Exchanges professional. Need Help with 1031 issues ? Then contact us now >

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§ 1031. Exchange of property held for productive use or investment...Read more law >

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Replacement Property Identification
Land Exchange
Exchange Formats
Treasury Regulations
Qualified Intermediaries

There are some things that Section 1031 doesn't apply to.

Section 1031 does not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness, or certain other assets.

1031 Related News

Deferred Exchanges Of Like Kind Property
Like-kind property can be a variety of business property, not just real estate; it can be any property held for productive use in a trade or business or for investment.

Tri-Valley Bank Partners With NES To Offer 1031 Tax-Deferred Exchange Products
NES is a Qualified Intermediary providing an industry-leading suite of 1031 tax-deferred exchange products for individual investors through major US corporations

Read More News >

Terms about 1031

Curtailments

Definition:
The borrower's privilege to make payments on a loan's principal before they are due. Paying off a mortgage before it is due may incur a penalty if so specified in the mortgage's prepayment clause.

Carrying Charges

Definition:
Various costs that are incidental to ownership (e.g., taxes insurance costs and maintenance expenses).

Tax Base

Definition:
Assessed valuation of real property, which is multiplied by the tax rate to determine the amount of tax due.

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FAQs Questions about 1031 Exchange

Question:

Answer:

Question: What are some of the more common types of contractual transfers of real estate that are not exempted from transfer tax?

Answer:

Property transferred as part of a like-kind exchange under Sec.1031 of the IRC or as part of a land swap are subject to transfer tax based on the fair market value of the property. Transfer tax is payable on each property transferred.

Question: Are transfers involving revocable trusts taxed differently?

Answer:

Transfers involving revocable trusts are taxable, but the Department will not challenge the price or consideration on which the tax is calculated, even if it was below FMV, if the beneficial interests in the trust are represented by non-transferable shares and the trust was set up and funded for estate-planning purposes as a testamentary substitute. The only transfers into such a revocable trust that qualify for the tax treatment described above are those that are conveyed by the creator of the trust into the trust and are designated under the trust’s terms to be conveyed to the trust beneficiaries as a result of the creator’s death. The only transfers out of such a revocable trust that qualify for the tax treatment described above are those that are conveyed directly to the beneficiaries of the trust as a result of the creator’s death. Any other transfers into or out of the trust are taxable on the FMV of the property transferred. Transfers out of a revocable trust that qualify for one of the exemptions specified in RSA 78-B:2 are, of course, exempt.

Did You Know ?
There are some things that Section 1031 doesn't apply to. Section 1031 does not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness, or certain other assets.

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