Top 1031 Exchange Pitfalls:
Closing the sale of the relinquished property without setting up a 1031 Exchange first
Not understanding the requirements for full tax deferral
Selling or exchanging into a property that is not held for investment or used in a trade or business
Using a person who is considered disqualified as an intermediary
Not consulting with a CPA/Tax Advisor before closing on the sale of relinquished property
Not Handling partnership/LLC issues properly
Not evaluating the entire exchange transaction on both sides of the exchange
Engaging in related-party transactions
Not understanding reverse exchange “Parking Arrangement” Transactions
For further information, please contact Kevin at kevin@kmckernan.com or 718-317-5007