Structuring A Successful Drop And Swap
Co-owners often hold real estate in a partnership to meet capital requirements or for other business reasons. But when an opportunity arises to exit the investment, the partners often disagree on the strategy. Some partners may prefer a liquidation event and are willing to pay tax to cash out of their investment, while others may wish to structure the transaction to qualify for a nonrecognition under section 1031 and avoid taxation until a future liquidation event.
Original Article Source Credits: Tax Analyst
Article Written By: Jesse C. Hubers
Original Article Posted on: Nov 1, 2021