Computing Gain For Multi-Property 1031 Exchange
When one or more like-kind replacement properties are identified and acquired as a part of a 1031 Exchange, taxes can be deferred as with a single-property 1031 Exchange. To calculate excess gain from a 1031 exchange of multiple properties or assets, the following steps must be followed:
- The 1031 exchange rules and regulations are applied to each individual 1031 exchange group to determine like-kind replacement properties received and the amount of any excess gain.
- An exchange group surplus or an exchange group deficiency must be determined For each tax-deferred exchange group for an exchange group surplus or an exchange group deficiency.
- The liabilities assumed as part of the 1031 exchange will be offset by the liabilities relieved of as part of the tax-deferred exchange.
- The relinquished properties sold and the like-kind replacement properties acquired should be segregated or sorted into exchange groups.
Disclaimer: 1031 exchange made simple does not guarantee the performance of the QI's in our referral network and we can not be held liable for any misrepresentations or mistakes in regards to a 1031 exchange by one of the QI's that we refer to you. 1031 Exchange made simple does not provide tax advice nor can we make representations regarding the tax consequences of an exchange transaction. 1031 Exchange made simple is a 1031 QI Referral Network. 1031 made simple is not responsible (in any way) for the performance, creditability, and financial condition of any QI in our network. In this new economic environment it is imperative that all potential 1031 exchange customers do their own due diligence and research on any QI that they may use, on a 1031 exchange. Please verify and check the validity of the Bonding and Insurance of your QI. It may be wise to have your 1031 exchange accounts set up as separate, individual customer accounts. Our web site is to be used as a information based web site only. All parties doing a 1031 exchange must consult their tax advisors or attorney for this information.
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