In a 1031 exchange, a related party is determined in one of two ways. There are people you are in familial relations with (your mother, father, child, ancestral and lineal descendants, etc.) But it’s also people you’re in business with (your employee, agent, attorney, accountant, etc.) These are very complex rules and the net may be broader than you think when determining who is a related party. Since related party transactions are more complicated and sophisticated, it’s important to know who is a related party. It’s a good idea to consult with a tax accountant or attorney if you’re engaged with someone you’ve done business with or that you’re related to by family relation.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
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