Q: Can a beneficiary be added to your real estate?

A: Yes, a beneficiary can be added by preparing a Transfer on Death Deed. This allows you to designate a beneficiary to receive your property at your death. This transfer can be changed or revoked anytime during life, and the real estate does not transfer until death. A Transfer on Death Deed also allows you to avoid the probate process.

Q: When should I contact my attorney if I want to do a 1031 exchange?

A: You should discuss your wishes with your attorney before you sign an agreement to sell your property.

Q: Why do a 1031 exchange?

A: 1031 exchanges offer the opportunity to defer or gain taxes recognized on the sale of property.

Q: What is like-kind property?

A: The Internal Revenue Code Section 1031 states that “no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held either for productive use in a trade or business or for investment.” Like-kind property can include an exchange of real estate for real estate (Single Family Rentals, Duplexes, Apartments, Commercial Properties, Farm Ground), equipment for equipment, and cattle for cattle.

Q: When is a 1031 exchange applicable?

A: It is applicable whenever a property owner intends to sell any property that is not his or her primary residence (and falls under the definition of like-kind property) and plans to buy another like-kind property within 180 calendar days following the closing of the property sold.

Q: Can there be more than one propert in a 1031 exchange?

A: Yes, there are no limits on the number of relinquished properties that can be included in the same 1031 exchange.

Q: What is a reverse 1031 exchange?

A: A reverse exchange occurs when the new property, intended to replace the current property, is purchased before the current property is sold.