The 1031 Exchange—
Traps, Escapes and Opportunities
The concept of the nonsimultaneous exchange arose T.J. Starker when he transferred encumbered timber property to Crown Zellerbach Corporation (Crown) in exchange for an unsecured promise by Crown to transfer like-kind property to him sometime during a five-year period. At the end of this five-year period, Mr. Starker was to receive the outstanding balance in cash together with a 6 percent growth factor. The Ninth Circuit Court found that Section 1031 did not contain any requirement that the transactions be simultaneous and that an exchange for like-kind property five years later was permissible. Further, the court found that the 6 percent growth factor was just interest in disguise and was taxable when received. In addition, the court expressly held that just because Mr. Starker might receive cash in the future didn’t disqualify it as a 1031 exchange.
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How to Sell a Property with a Tenant Living in It
This primarily occurs with single-family homes and small plexes. However, it can be a problem with large complexes, as well, if the showing and sale process is handled with no regard to tenants.
The reason it becomes a problem is that you, as the seller of the property, are dealing with two separate customers, the tenant and the prospective buyer, each of whom may have conflicting needs and wants. To each you need to provide good customer service.
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THE QUESTION– There’s A Fungus Among Us?
(Eliminating Mold and Mildew Odors)
Advice for Landlords-to-Be
Court Rules Federal Standards Not the Only Way to Comply with Accessibility Requirements
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