{"id":27296,"date":"2018-08-01T09:26:14","date_gmt":"2018-08-01T13:26:14","guid":{"rendered":"https:\/\/www.affiliated1031.com\/common-1031-myths-part-2\/"},"modified":"2023-09-22T11:20:19","modified_gmt":"2023-09-22T15:20:19","slug":"common-1031-myths-part-2","status":"publish","type":"post","link":"https:\/\/www.affiliated1031.com\/es\/common-1031-myths-part-2\/","title":{"rendered":"Common 1031 Myths \u2013 Part 2"},"content":{"rendered":"<div  class=\"tatsu-SJ-caSYb6c tatsu-section  tatsu-bg-overlay   tatsu-clearfix\" data-title=\"\"  data-headerscheme=\"background--dark\"><div class='tatsu-section-pad clearfix' data-padding='{\"d\":\"0px 0px 90px 0px\"}' data-padding-top='0px'><div class=\"tatsu-row-wrap  tatsu-wrap tatsu-row-one-col tatsu-row-has-one-cols tatsu-medium-gutter tatsu-reg-cols  tatsu-clearfix tatsu-rJe5aBKb6q\" ><div  class=\"tatsu-row \" ><div  class=\"tatsu-column  tatsu-bg-overlay tatsu-one-col tatsu-column-image-none tatsu-column-effect-none  tatsu-BycarF-69\"  data-parallax-speed=\"0\" style=\"\"><div class=\"tatsu-column-inner \" ><div class=\"tatsu-column-pad-wrap\"><div class=\"tatsu-column-pad\" ><div  class=\"tatsu-module tatsu-text-block-wrap tatsu-HkppSF-a9  justify\"><div class=\"tatsu-text-inner tatsu-align-center  clearfix\" ><style>.tatsu-HkppSF-a9.tatsu-text-block-wrap .tatsu-text-inner{width: 100%;text-align: left;}<\/style>\n<p>I have been handling Section 1031 tax-deferred exchanges as a Qualified Intermediary for more than 30 years.&nbsp; The following are some of the typical exchange myths I hear repeated almost every day.<\/p>\n<\/div><\/div><div  class=\"tatsu-module tatsu-text-block-wrap tatsu-Sy-ABBWA9  justify\"><div class=\"tatsu-text-inner tatsu-align-center  clearfix\" ><style>.tatsu-Sy-ABBWA9.tatsu-text-block-wrap .tatsu-text-inner{width: 100%;text-align: left;}<\/style>\n<p><strong>Myth # 7: Bowling Alley Misconception\/Simultaneous Exchange<\/strong><br \/>\n<strong>The Correct Answer:<\/strong> One of our exchangor\u2019s is selling (exchanging) a bowling alley for an interest in a shopping center. The taxpayer (Exchangor) was very upset because he was told by a \u201cprofessional\u201d that he had to conclude a simultaneous transaction in order to have a valid Section 1031 tax-deferred exchange. So, let me correct one of the many misconceptions (myths) about 1031 exchanges. A one-for-one simultaneous exchange need not take place. In a standard forward delayed exchange (the most common type of exchange), the property is sold (Relinquished Property) and replacement property is purchased (Replacement Property) within 180 days following the sale of the Relinquished Property. In 99% of the cases, the exchanger is purchasing the Replacement Property from a new seller, who had nothing to do with the exchangor\u2019s Relinquished Property transaction<\/p>\n<p><strong>Myth # 8: Getting hit up at a party\u20141031 is a tax loophole?<\/strong><br \/>\n<strong>The Correct Answer:<\/strong> When was the last time you went to an event and asked your friend the Doctor who was in attendance at the event, about something you thought was medically wrong with you. I get \u201chit up\u201d all the time. As a lawyer, people are always asking for \u201cfree advice\u201d. Last week, at a party, someone, knowing that I handle thousands of 1031 tax-deferred exchanges each year, asked, no let me change that, stated, that Section 1031 was a loophole in the Tax Code. So, let me get this off my chest, once and for all. Section 1031 of the Internal Revenue Code has been a part of the Code since the inception of the Internal Revenue Code during the 1920s. It is a valid and legal tax deferral strategy, which stimulates investment in our economy and is NOT a gimmick or loophole in the Tax Code. Enough said.<\/p>\n<p><strong>Myth # 9: My attorney can and should act as the Qualified Intermediary.<\/strong><br \/>\n<strong>The Correct Answer:<\/strong> The IRS Regulations refer to those parties that cannot act as the Qualified Intermediary as \u201cdisqualified persons.\u201d Well then, who is a \u201cdisqualified person?\u201d Disqualified people are agents of the taxpayer or a related party to the taxpayer.<\/p>\n<p>Examples of \u201cdisqualified persons\u201d are the taxpayer\u2019s agent or real estate agent at the time of the transaction; family members, including ancestors, descendants, and siblings. Additional \u201cdisqualified persons\u201d are corporations in which the taxpayer owns more than 10% of the stock of the corporation; Trusts in which the taxpayer is both the fiduciary and beneficiary or fiduciary and grantor; or Partnerships in which the taxpayer owns more than 10% of the partnership, etc.<\/p>\n<p>I know you are asking yourself, \u201cOK, what is an agent?\u201d The IRS Regulations define an agent for disqualification purposes as anyone who may have acted as the taxpayer\u2019s employee, attorney, accountant, investment banker, broker, or real estate agent within the two-year period of the sale of the relinquished property.<\/p>\n<p>Affiliated 1031, LLC always recommends that the taxpayer should consult their tax and\/or legal counsel on all matters dealing with the Internal Revenue Service.<\/p>\n<p>I personally look forward to working with you on your next Section 1031 exchange. To answer any of your questions or to open a Section 1031 transaction, please contact Stephen A. Wayner, Esq. CES at our toll-free telephone number: 877 &#8211; (USE) 873-1031 or at <a href=\"mailto:info@affiliated1031.com.\">info@affiliated1031.com.<\/a><\/p>\n<\/div><\/div><div class=\"tatsu-row-wrap  tatsu-row-has-one-half tatsu-row-has-two-cols tatsu-medium-gutter tatsu-reg-cols tatsu-inner-row-wrap  tatsu-clearfix tatsu-S1lbKBr-A9\" ><div  class=\"tatsu-row \" ><div  class=\"tatsu-column  tatsu-bg-overlay tatsu-one-half tatsu-column-image- tatsu-column-effect-  tatsu-r1zYHS-0q\"  data-parallax-speed=\"0\" style=\"\"><div class=\"tatsu-column-inner \" ><div class=\"tatsu-column-pad-wrap\"><div class=\"tatsu-column-pad\" ><div  class=\"tatsu-single-image tatsu-module align-center tatsu-image-lazyload tatsu-SJOKBHZRc  \" ><div class=\"tatsu-single-image-inner \" style=\"width : 271px;\" ><div class = \"tatsu-single-image-padding-wrap\" style = \"padding-bottom : 145.0184501845%;\" ><\/div><img class = \"tatsu-gradient-border\" alt = \"\" title = \"imagen-3\" data-src = \"https:\/\/www.affiliated1031.com\/wp-content\/uploads\/2018\/08\/imagen-3.png\" src =\"data:image\/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAQAAAC1HAwCAAAAC0lEQVR42mNkYAAAAAYAAjCB0C8AAAAASUVORK5CYII=\"  \/><\/div><style>.tatsu-SJOKBHZRc .tatsu-single-image-inner{border-style: solid;max-width: 100%;}.tatsu-SJOKBHZRc.tatsu-single-image{transform: translate3d(0px,0px, 0);}<\/style><\/div><div  class=\"tatsu-animated-link tatsu-animated-link-style4  tatsu-HkN2BHW0c tatsu-module tatsu-animated-link-align-center  \"><a class = \"tatsu-animated-link-inner \" href = \"\/common-1031-myths-part-1\/\"   aria-label = \"Common 1031 Myths \u2013 Part 1\"><span class = \"tatsu-animated-link-text\"  >Common 1031 Myths \u2013 Part 1<\/span><span class = \"tatsu-animated-link-arrow\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" x=\"0px\" y=\"0px\" width=\"25px\" height=\"15px\" viewBox=\"0 0 30 18\" enable-background=\"new 0 0 30 18\" 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\"\"><\/div><\/div><div class=\"tatsu-overlay tatsu-column-overlay tatsu-animate-none\" ><\/div><\/div><style>.tatsu-row > .tatsu-r1zYHS-0q.tatsu-column{width: 50%;}.tatsu-r1zYHS-0q.tatsu-column > .tatsu-column-inner > .tatsu-column-overlay{mix-blend-mode: normal;}.tatsu-r1zYHS-0q > .tatsu-column-inner > .tatsu-top-divider{z-index: 9999;}.tatsu-r1zYHS-0q > .tatsu-column-inner > .tatsu-bottom-divider{z-index: 9999;}.tatsu-r1zYHS-0q > .tatsu-column-inner > .tatsu-left-divider{z-index: 9999;}.tatsu-r1zYHS-0q > .tatsu-column-inner > .tatsu-right-divider{z-index: 9999;}@media only screen and (max-width:1377px) {.tatsu-row > .tatsu-r1zYHS-0q.tatsu-column{width: 50%;}}@media only screen and (min-width:768px) and (max-width: 1024px) {.tatsu-row > .tatsu-r1zYHS-0q.tatsu-column{width: 50%;}}@media only screen and (max-width: 767px) {.tatsu-row > .tatsu-r1zYHS-0q.tatsu-column{width: 100%;}}<\/style><\/div><div  class=\"tatsu-column  tatsu-bg-overlay tatsu-one-half tatsu-column-image- 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d=\"M1,8h28.001c0.551,0,1,0.448,1,1c0,0.553-0.449,1-1,1H1c-0.553,0-1-0.447-1-1\n\t\t\t\tC0,8.448,0.447,8,1,8z\"><\/path>\n\t\t\t<\/svg><\/span><\/a><style>.tatsu-ByPsrHW09 .tatsu-animated-link-inner{color: rgba(27,150,211,1) ;}.tatsu-ByPsrHW09 .tatsu-animated-link-inner:hover{color: rgba(49,50,51,1) ;}.tatsu-ByPsrHW09 .tatsu-animated-link-inner:hover .tatsu-animated-link-arrow{color: rgba(27,150,211,1) ;}.tatsu-ByPsrHW09.tatsu-module{margin: 0px 0px 40px 0px;}<\/style><\/div><\/div><\/div><div class = \"tatsu-column-bg-image-wrap\"><div class = \"tatsu-column-bg-image tatsu-bg-lazyload\" data-src = \"\"><\/div><\/div><div class=\"tatsu-overlay tatsu-column-overlay tatsu-animate-none\" ><\/div><\/div><style>.tatsu-row > .tatsu-rJxzFHBZRq.tatsu-column{width: 50%;}.tatsu-rJxzFHBZRq.tatsu-column > .tatsu-column-inner > .tatsu-column-overlay{mix-blend-mode: normal;}.tatsu-rJxzFHBZRq > .tatsu-column-inner > .tatsu-top-divider{z-index: 9999;}.tatsu-rJxzFHBZRq > .tatsu-column-inner > .tatsu-bottom-divider{z-index: 9999;}.tatsu-rJxzFHBZRq > .tatsu-column-inner > .tatsu-left-divider{z-index: 9999;}.tatsu-rJxzFHBZRq > .tatsu-column-inner > .tatsu-right-divider{z-index: 9999;}@media only screen and (max-width:1377px) {.tatsu-row > .tatsu-rJxzFHBZRq.tatsu-column{width: 50%;}}@media only screen and (min-width:768px) and (max-width: 1024px) {.tatsu-row > .tatsu-rJxzFHBZRq.tatsu-column{width: 50%;}}@media only screen and (max-width: 767px) {.tatsu-row > .tatsu-rJxzFHBZRq.tatsu-column{width: 100%;}}<\/style><\/div><\/div><\/div><\/div><\/div><div class = \"tatsu-column-bg-image-wrap\"><div class = \"tatsu-column-bg-image tatsu-bg-lazyload\" data-src = \"\"><\/div><\/div><div class=\"tatsu-overlay tatsu-column-overlay tatsu-animate-none\" ><\/div><\/div><style>.tatsu-row > .tatsu-BycarF-69.tatsu-column{width: 100%;}.tatsu-BycarF-69.tatsu-column > .tatsu-column-inner > .tatsu-column-overlay{mix-blend-mode: normal;}.tatsu-BycarF-69 > .tatsu-column-inner > .tatsu-top-divider{z-index: 9999;}.tatsu-BycarF-69 > .tatsu-column-inner > .tatsu-bottom-divider{z-index: 9999;}.tatsu-BycarF-69 > .tatsu-column-inner > .tatsu-left-divider{z-index: 9999;}.tatsu-BycarF-69 > .tatsu-column-inner > .tatsu-right-divider{z-index: 9999;}@media only screen and (max-width:1377px) {.tatsu-row > .tatsu-BycarF-69.tatsu-column{width: 100%;}}@media only screen and (min-width:768px) and (max-width: 1024px) {.tatsu-row > .tatsu-BycarF-69.tatsu-column{width: 100%;}}@media only screen and (max-width: 767px) {.tatsu-row > .tatsu-BycarF-69.tatsu-column{width: 100%;}}<\/style><\/div><\/div><\/div><\/div><div class=\"tatsu-section-background-wrap\"><div class = \"tatsu-section-background tatsu-bg-lazyload\" data-src = \"\"><\/div><\/div><div class=\"tatsu-overlay tatsu-section-overlay\"><\/div><style>.tatsu-SJ-caSYb6c .tatsu-section-pad{padding: 0px 0px 90px 0px;}.tatsu-SJ-caSYb6c .tatsu-section-offset-wrap{transform: translateY(-0px);}.tatsu-SJ-caSYb6c > .tatsu-bottom-divider{z-index: 9999;}.tatsu-SJ-caSYb6c > .tatsu-top-divider{z-index: 9999;}.tatsu-SJ-caSYb6c .tatsu-section-overlay{mix-blend-mode: normal;}<\/style><\/div>\n","protected":false},"excerpt":{"rendered":"<p>I have been handling Section 1031 tax-deferred exchanges as a Qualified Intermediary for more than 30 years.  The following are some of the typical exchange myths I hear repeated almost every day.<\/p>\n<div><a href=\"https:\/\/www.affiliated1031.com\/es\/common-1031-myths-part-2\/\" class=\"exp-read-more exp-read-more-underlined\">Read More<\/a><\/div>\n","protected":false},"author":1,"featured_media":26911,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"categories":[57,56,66],"tags":[67,68],"class_list":["post-27296","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-1031-exchange-basics-es","category-news-es","category-technology-es","tag-news-es","tag-tech-es"],"_links":{"self":[{"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/posts\/27296","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/comments?post=27296"}],"version-history":[{"count":1,"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/posts\/27296\/revisions"}],"predecessor-version":[{"id":28177,"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/posts\/27296\/revisions\/28177"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/media\/26911"}],"wp:attachment":[{"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/media?parent=27296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/categories?post=27296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/tags?post=27296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}