Appraisers' Free Forum

**Jim Plante** · Posted: Thu Jan 10, 2008 4:11 pm Post subject: 1031 Exchanges

Many of our seasoned veterans have appraised property for 1031 exchanges. I haven't, and had no clue how such an exchange works or why one would want to do that. The following article from Realty Times gives a brief outline of how such an exchange is executed, and some of the pitfalls to which someone engaging in one can fall prey. It's an easy read, and it makes me glad we've got lawyers and CPA's to sort all this stuff out.

http://realtytimes.com/rtpages/20080107_1031exchange.htm
_________________
Jim Plante

**Cindy E** · Posted: Thu Jan 10, 2008 10:56 pm Post subject:

Jim, thank you so much for posting this! I understand the process a whole lot better now. Cool

_________________
Cindy
Light travels faster than sound. That is why some people appear bright until you hear them.

Jay Trotta · Member Joined: 12 Aug 2007 Posts: 788 Location: Snowglobe

the 1031 exchange has been around for years; it has grown more complex because....some cleaver sucka's have tried to get around some of the Rules, naturally.

If used in it's benefit oriented writting it came become a useful tool in the Real Estate business; someone will always try to outsmart the IRS, but hey, Rulkes were made to be broken, some just don't understand the consequences.
_________________
As President Ford said, "A government big enough to give you everything you want, is strong enough to take everything you have."

**Steve Owen** · Posted: Wed Jan 23, 2008 9:47 am Post subject:

Thanks for posting this. I thought I pretty much knew about the 1031, but this was a great refresher article. Very concise.

The big question in my mind, whenever I have seen a sale that was noted as a 1031 exchange, was what effect on value did the 1031 have? So far, in the ones I have seen, I have not been able to isolate that there was much of an effect. Has anyone else been able to quantify this?
_________________
The Rembrandt light of memory, finicky and magical and faithful at the same time, as the cheaper tint of nostalgia never is. - Ivan Doig, The Whistling Season

Jay Trotta · Member Joined: 12 Aug 2007 Posts: 788 Location: Snowglobe

Steven

I think it would be difficult from the point of not being "privy" to the complexity of the deal; there are several aspects that can be utilized, so it becomes a complex item as soon as you step away from; the like / kind & quality issue - very simple to do. The advantages far outweigh disadvantages, so if you know what you are seeking it becomes a more useful tool; Builders can use them to great advantage in markets similar to the one we're in now, swapping old for new plus capital and take the tax advantage.

Again, it depends on what you end result is that you are seeking....good luck and pre-arrange your CPA & Attorney so that you are sure they fully understand what your attempting to accomplish.
_________________
As President Ford said, "A government big enough to give you everything you want, is strong enough to take everything you have."

**Ter Shields** · Posted: Thu Mar 27, 2008 9:54 pm Post subject: