Cardinal Title Center, LLC reposted this
1031 Pitfalls...⬇ A number of common real estate issues can have a potentially negative impact on any tax-deferred exchange. Here are a few: * Is the exchanger considering seller financing on the relinquished property? * Does the exchanger want to sell to or buy from a related party? * Does the exchanger want to build the replacement property? * Does the exchanger want to buy replacement property before closing on the sale of the relinquished property? * If the property is owned by more than one person, would they be deemed a partnership for tax purposes? * If the property is owned by a partnership, do only some of the partners want to do an exchange? Focus: These are only a few potential pitfalls, but they serve as an illustration of the complexity of the exchange rules and the need for competent exchange counsel. As the Qualified Intermediary, we cannot provide tax or legal advice to our clients. We encourage all exchangers to be well represented by counsel. What snakes, pits, and alligators have you helped clients avoid to get the gold? Investors Title Company and Affiliates National Investors Title Insurance Company Investors Trust Company Investors Title Exchange Corporation