The right way to handle a Section 1031 rental exchange

Do you own rental properties? Do you want to grow your rental-property business?

Then you need to know the ins and outs of the Section 1031 exchange.

Mr. Adams did. That’s why he was able to overcome an IRS objection that his Section 1031 exchange failed because his replacement rental-property fit his son’s family’s needs.

We’ll explain the Adams case and show you how to stay out of trouble when you read my new article titled Tax Tips: 1031 Exchange Survives Rental to Son.

Three ways our fact-filled article can help you:

1. We’ll explain why you need an “exchange intermediary.” Under the 1031 rules, when you sell an existing property and then buy a new one, you have to use an exchange intermediary. Mr. Adams completed an exchange that involved a rental to his son. This raised issues with the IRS. You’ll learn what got him into trouble (and how you can stay out of trouble!) when you read the full article.
2. You’ll learn why it’s important to charge fair market rent. The IRS claimed that Mr. Adams acquired his new home for personal reasons and that he intended to let his son and family live there at below market rent. If this were true, the exchange would fail and Mr. Adams would have to pay a huge tax bill. But Mr. Adams won his case and you’ll see why when you read the full article.
3. We’ll tell you how to handle barter transactions. Mr. Adams’ son did some construction work on the property but wasn’t paid for it. Instead, he received a reduction in rent… a barter transaction. This could have caused some huge tax problems. We’ll show you how to avoid them when you read the full article.