like-kind exchange – Segregation Holding

1031 Exchanges and Cost Segregation

By Jeff Hobbs August 13, 2013

A 1031 exchange allows investors to improve returns at the time they dispose of any property held for investment by providing the opportunity for tax deferral of all recapture, federal and state capital gain taxes and the new 3.8% Section 1411 net investment income tax when applicable. IRC Section 1031 has been a part of…

1031 Exchange Year-end Tips

By Jeff Hobbs October 26, 2012

Here’s a couple year-end tips if you are considering a 1031 exchange. Did you know that if you open a 1031 exchange and your Accommodator is holding your funds before the New Year you get to defer any capital gain taxes due until 2014, even if you cancel your 1031 exchange? Since the 1031 exchange…

How do I compute gain in a like-kind exchange when some cash is received?

By Jeff Hobbs September 19, 2012

When you receive cash other than the like-kind property in a like-kind exchange, the cash is treated as “boot.” Boot does not render the transaction ineligible for non-recognition treatment but it does require you to recognize gain to the extent of the cash received. The same is true for other non-like-kind property in a like-kind…

Deferred Sales Trust Defers Capital Gains

By Jeff Hobbs April 30, 2012

Anyone can defer capital gains taxes indefinitely using a Deferred Sales Trust. Your first question might be, “what is a Deferred Sales Trust?” Good question! First of all, a Deferred Sales Trust (aka, DST), is the intent of Internal Revenue Code Sec. 453. However, when reading Sec. 453 one will not find the words Deferred…