1031 Exchange Eligibility Lorton VA

Courts that have analyzed 1031 exchange eligibility of a property have generally concluded that the requirements are met if the property is held “primarily for investment.” In other words, if there is objective evidence that the taxpayer’s primary motive is to hold the property for investment, then limited use of the property by the taxpayer for personal enjoyment will not destroy the investment character of the property.

Local Companies

Century 21 New Millennium
703-313-8090
5990 Kingstowne Towne Center
Alexandria, VA
Long & Foster
703-508-6178
7010 Little River Turnpike
Annandale, VA
Broadway Gallery
703.354.2905
5641B General Washington Drive
Alexandria, VA
DC Metro VA Real Estate LLC
703-405-7556
10511-A Braddock Rd
Fairfax, VA
Long and Foster
703-998-3111
200 North Pickett St. #606
Alexandria, VA
Brian Block - RE/MAX Allegiance
703-626-0715
5100 Leesburg Pike, Suite 200
Alexandria, VA
Guaranteed Rate Inc.
703-426-8700
11350 Random Hills Road
Fairfax, VA
Easy Mortgage Money
703 380-7595
3717 four mile
arlingto, VA
Washington REITS
703 2426734
133 Mendon Lane SW
Vienna, VA
Keller Williams Realty
571-259-3009
P O Box 4812
Manassas, VA

1031 Exchange Eligibility

provided by:




Courts that have analyzed 1031 exchange eligibility of a property have generally concluded that the requirements are met if the property is held “primarily for investment.” Internal Revenue Code Section 1031(a) provides that:

"[n]o 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" (emphasis added)

In other words, if there is objective evidence that the taxpayer’s primary motive is to hold the property for investment, then limited use of the property by the taxpayer for personal enjoyment will not destroy the investment character of the property.

 

Difficulties in determining intent

It is easy to frame the issue, but it is often difficult to determine whether the taxpayer’s investment intent dominates an intent to hold for personal use. This is especially true when the taxpayer holds a vacation property and uses it from time to time. The practical difficulty is compounded by the IRS's limited guidance concerning the requirements to prove that the property is held for investment. A recent Treasury Inspector General Audit report (“TIGA”) pertaining to the IRS’s enforcement of 1031 exchanges was critical of the IRS for its failure to provide guidance to taxpayers, thereby leaving unrebutted the claims of some promoters that vacation properties and second homes were generally eligible for exchange.

Click here to read the rest of the article.

NuWire Investor is an online publication that offers quality information about alternative investments such as real estate, commodities and franchises.

Author: Scott Saunders
Copyright © NuWire Investor and NuWire, Inc 2007. All rights reserved. NuWire Investor material may not be copied, reproduced, redistributed, published or modified without the prior express written consent of NuWire, Inc.

Featured Local Company

Century 21 New Millennium

703-313-8090
5990 Kingstowne Towne Center
Alexandria, VA
http://www.chriswhitwood.com

Related Articles
- Capital Requirements for Real Estate Lorton VA
Although you can easily begin your real estate career with traditional investments, for example, stocks, the majority of real estate investments require far greater investments. In this article, you’ll learn what investments and capital requirements you’ll need.
- 1031 Real Estate Exchange Lorton VA
- Subdividing Property For Profit Lorton VA
- Real Estate Investing: Real Estate - The Hidden Investment Lorton VA
- Real Estate Market Q&A Part 3 Lorton VA
- Real Estate Tips Lorton VA
- 1031 Exchanges Lorton VA
- Real Estate Q and A Part 3 Lorton VA
- Real Estate Problems Lorton VA
- Real Estate Q&A Part 5 Lorton VA
Related Articles
- Capital Requirements for Real Estate Lorton VA
Although you can easily begin your real estate career with traditional investments, for example, stocks, the majority of real estate investments require far greater investments. In this article, you’ll learn what investments and capital requirements you’ll need.
- 1031 Real Estate Exchange Lorton VA
- Subdividing Property For Profit Lorton VA
- Real Estate Investing: Real Estate - The Hidden Investment Lorton VA
- Real Estate Market Q&A Part 3 Lorton VA
- Real Estate Tips Lorton VA
- 1031 Exchanges Lorton VA
- Real Estate Q and A Part 3 Lorton VA
- Real Estate Problems Lorton VA
- Real Estate Q&A Part 5 Lorton VA
Related Local Events
Remodeling & Home Decor Show
Dates: 9/19/2008 - 9/21/2008
Location: Dulles Expo Center
Chantilly VA
View Details

Ideal Living Real Estate Show-Washington
Dates: 9/12/2008 - 9/14/2008
Location: Hyatt Regency Reston
Washington DC
View Details
Rate Article
     
Articles Insider

Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin

Topics:
Advertising Engineering Home Services Retail & Consumer Services
Business Services Entertainment Industrial Goods & Services Software
Career Family Insurance Technology
Cars Financial Services Internet Telecommunications
Computer Hardware Food & Beverage Legal Transportation & Logistics
Construction Health Pets Travel
Education Home Electronics Real Estate Wedding