Information g reit liquidating trust singlesuche Wiesbaden
The QI is the recipient of the net proceeds from the closing of the relinquished property, with the money impounded for subsequent reinvestment into other realty.Any earnings on these monies may not be paid to the exchangor until the end of the exchange.The author answers questions about section 1031, from the most basic, such as what real estate is eligible for like-kind treatment and what timelines apply, to the most complex, such as how to structure more sophististicated transactions and realty conversions. Under IRC section 1031, a taxpayer is allowed to postpone the recognition of gain on the disposition of qualifying realty by the acquisition of replacement real property that will be later identified and purchased within a specific period of time.
Consequently, investment realty (held for either appreciation or rental) can be exchanged for real property used in a trade or business.
Foreign realty is also not eligible for section 1031 treatment. As a result, the structuring of a deferred real property exchange requires documentation to support an interdependent and integrated transaction with the sale proceeds not being paid to the exchangor at the settlement date (or held in escrow).
The paper trail for this documentation should begin with the original purchase and sale agreement, which could contain a clause such as: The seller reserves the option to convert the subject transaction to qualify under IRC section 1031 with the purchaser agreeing to cooperate in the execution of any of the required documentation (including but not limited to a four-party deferred exchange agreement and a qualified intermediary agreement), provided the purchaser shall incur no additional cost or liability. What is the role of the qualified intermediary in an exchange?
This can be accomplished through a contractual provision for the buyer to have preclosing occupancy with a triple net lease feature; the closing date would be at the option of the exchanging taxpayer. As reflected in the Exhibit, the maximum number of replacement properties which the exchangor may identify under the regulations is— Replacement property acquired during the 45-day period reduces the number of properties that can be identified under the rules above. When may an exchangor receive money from an exchange?
The exchangor’s right to receive money or other property must be limited.