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Daily Archives: November 1, 2017

Can a Real Estate Professional Successfully Complete a Personal 1031 Exchange?

Can a Real Estate Professional Successfully Complete a Personal 1031 Exchange?

One of the key rules for a real estate exchange to qualify for capital gains tax deferral under section 1031 is that the property involved was held for either investment purposes or for productive use in trade or business. In many cases, this is a straightforward thing to show. However, questions may arise as to whether this strict requirement has been met when the exchanger works in real estate for a living. For example, if you are an exchanger who regularly buys and sells real estate or flips properties for profit, the IRS will scrutinize your exchange differently than if you were a casual real estate investor. That doesn’t mean […]