Must I report a 1031 exchange?
August 10, 2011
Date: 14 Jun 2010
Subject: Real Estate Tax Handbook
I am reading your book (Real Estate Tax Handbook – 2008 Edition). A sub-heading in the chapter on 1031 exchanges asks the question, "Is an election required?" Does this mean that if a taxpayer were to perform an exchange through an intermediary, he or she must report an exchange on his or her income tax return?
Date: 2 Jul 2010
Yes. Section 1031 is not an elective section. If you structure a transaction as a tax deferred exchange, it must be reported as one.
We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.
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