The 1031 Reinvestment Plan: A Complete Guide to Tax-Free Real Estate Sales [Paperback]

Fred Crane (Author)

Book Description

Publication Date: April 20, 2006

Many real estate professionals have heard of the §1031 tax avoidance scheme, but few understand its internal mechanics. As with most issues of taxation, the concepts that drive §1031 reinvestment plans are as unique as the IRS regulations regarding them are obtuse.

Written by a preeminent real estate expert, Fred Crane's experience spans the decades, from developer, broker, and syndicator, to a law practice specializing in real estate issues. As the author of numerous real estate related textbooks, Crane helps make the practical application of The 1031 Reinvestment Plan easy to understand, detailing how to complete the tax-free sale of a property and reinvest in a replacement property.

Editorial Reviews

Excerpt. © Reprinted by permission. All rights reserved.

The Tax-exempt Sale by Reinvestment

Numerous benefits and advantages are available to sellers of §1031 like-kind properties who, rather than "cash out" on the sale of their property, couple the sale with the purchase of replacement property(ies). Thus, a reinvestment is arranged that establishes the seller's continuing investment in the ownership of like-kind real estate, a requirement to qualify the sale for profit tax exemption under Internal Revenue Code (IRC) §1031.

One or more of these benefits and advantages becomes the motivating factor influencing an investor's decision to sell one property and buy replacement property in a tandem transaction called a §1031 reinvestment plan.

If a broker knows the advantages of buying and selling under §1031 rules, the broker:

-can undertake the duty to determine how his client might benefit from §1031 tax treatment by advising his client about the benefits [See Chapter 2];

-can arrange a reinvestment where the motives of opposing parties to buy or sell may differ; and

-can be rewarded by receiving two fees for giving advice and assistance in the negotiations of the two transactions.

Product Details

• Paperback: 301 pages
• Publisher: Zyrus Press, Inc. (April 20, 2006)
• Language: English
• ISBN-10: 1933990058
• ISBN-13: 978-1933990057
• Product Dimensions: 10.8 x 8.5 x 0.7 inches
• Shipping Weight: 1.6 pounds (View shipping rates and policies)
• Average Customer Review: 5.0 out of 5 stars  See all reviews (1 customer review)
• Amazon Best Sellers Rank: #1,773,353 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

21 of 21 people found the following review helpful:

5.0 out of 5 stars A must-have reference book for every real estate investor!, June 7, 2006

By 

Kathy Gottberg (La Quinta, CA) - See all my reviews
(REAL NAME)   

This review is from: The 1031 Reinvestment Plan: A Complete Guide to Tax-Free Real Estate Sales (Paperback)

Anyone who has ever considered doing a 1031 Exchange needs to own this book. As usual with all real estate materials written by Fred Crane, it is filled with details, usable forms and guidelines to insure that the transaction is done legally and correctly. Naturally, it covers the tremendous tax advantages of 1031s as well as the facts behind the motivation. It then covers the fundamentals of exchange--everything from multi-million dollar commercial buildings, to vacation homes, to TICs, to avoiding dealer status. While real estate brokers and agents would benefit by learning the mechanics of the 1031 exchange so they could better serve their clients, the true beneficiary of this knowledge is the investing public. In this day and age, one must know more than their advisors--after reading this book, you will know more than just about everyone in the real estate exchange market. If you are looking for a book that spells out what to do, when to do it, and everything you need to know--then this is the book for you.