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Some Reasons for Failing 1031 Exchange Requirements

05/14/08

Permalink 01:20:13 pm, by Rick

Some Reasons for Failing 1031 Exchange Requirements

by James P. McNamara - The Moore case flunked the Section 1031 tax-free exchange test for a variety of reasons, according to the tax court. The taxpayers never rented or attempted to rent the properties. Nor did they offer the replacement property for sale until they were forced to do so by the need for liquidity, in connection with the division assets incident to their divorce. In addition, they failed to claim any tax deductions for maintenance expenses or depreciation connected with the properties and claimed interest deductions on both properties as home mortgage interest rather than as investment interest.

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Get more information about 1031 Exchanges before making a decision.

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