- 1031 Exchanges
- Tenants-In-Common
- Exchange Details & Requirements
- Real Estate Professional
Dual Registration Program - Tax Professionals, Legal Advisors & Northland Securities1031
- About Us
- The Tax Deferred Exchange
- How to Initiate an Exchange
- 1031 Exchange Requirements
- Do's & Don'ts of 1031 Exchange Planning
- Can Your Tax Professional or Legal Advisor Be Your Qualified Intermediary?
- Exchange Terminology
- Like-Kind Property
- 1031 Qualified Property
- Delayed Exchange Deadlines
- Tenant-In-Common Interests
- Master Lease-Tenants-In-Common
- Non-Tax Reasons to Exchange
- Role & Selection of a Qualified Intermediary
- Role of a Tax Professional or
Legal Advisors - Disqualified Parties
- Tenants-in-Common Research &
Due Diligence Reports - Exchange Language
Exchange Details & Requirements
Non-Tax Reasons To Exchange
Tax benefit realized from the deferral of capital gain tax on the disposition of investment property are an important reason to consider an IRC 1031 Tax Deferred Exchange. Non-Tax benefits are also underlying reasons for accredited investors to complete a 1031 tax deferred exchange. The following is a partial list of non-tax reasons to exchange.
- Exchange from bare land to income producing property thereby increasing monthly cash flow to the exchanger.
- Exchange to realize geographic diversity in investment property.
- Exchange from multiple apartment properties to achieve asset class diversification with a portfolio of institutional quality office, industrial, commercial, and apartment properties.
- Exchange from a fully depreciated property to a property with a new depreciation schedule.
- Exchange from management intensive properties to professionally managed properties.
- Exchange from a rental home to a property used for business. For example, a dentist exchanges from a residential rental to an office building used in his or her own practice.
- Exchange from a large raw land property to multiple income properties for both income and estate distribution purposes.
- Exchange from non-income producing property to institutional quality income property.
Northland Securities recommends that a tax payer considering an IRC 1031 Exchange should seek that advice of their tax professional and legal advisors.