Navigating the complexities of 1031 exchanges becomes especially challenging considering that real estate investors typically do not frequently sell their rental properties. As a result, even the most experienced tax professionals may lack the specialized knowledge needed to address all the crucial aspects of a 1031 exchange. That’s where the role of our experts at Exchange Planning Corporation comes into play.
It will also make you smarter than most tax professionals. Almost every exchange of real estate property involves boot, which is another term for cash. Sadly, most tax professionals don’t know the definition of “cash received” or why there is boot in these exchanges. Having an understanding will help you complete a valid exchange and save taxes on it, too.