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Full-Text Articles in Law
Workout-Driven Exchanges, Brad Borden, Todd D. Keator
Workout-Driven Exchanges, Brad Borden, Todd D. Keator
Bradley T. Borden
Market forces in a depressed real estate market often lead to foreclosures, which may generate taxable gain to the debtor. Some foreclosure sales may qualify for Section 1031 nonrecognition, if the debtor properly structures the disposition. This Article discusses structures that help foreclosure transactions qualify for Section 1031 nonrecogntion. The Article also discusses the application of Section 1038 to recquisitions of exchanger-financed relinquished property.
Open Tenancies-In-Common, Brad Borden
Open Tenancies-In-Common, Brad Borden
Bradley T. Borden
Tax law (section 1031 in particular) has spawned a new investment vehicle—open tenancies in common. Tax law allows property owners to exchange into like-kind real property tax free, but finding suitable replacement property can be difficult. Real estate syndicators, recognizing a demand for ready-access replacement property, began offering undivided interests in large multi-million-dollar properties to individual investors exchanging out of smaller properties. Those offerings were the first open tenancies in common. Open tenancies in common are distinguished from traditional or close tenancies in common by the size of coowned property, the coowners’ mutual lack of acquaintance, and the separation of …