Structuring A Successful Drop And Swap

Author: External Author |

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.

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Original Article Source Credits:  Tax Analyst

Article Written By: Jesse C. Hubers

Original Article Posted on: Nov 1, 2021

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