WHAT IS NEEDED WHEN THE EXCHANGER IS A PARTNERSHIP, CORPORATION OR TRUST?
There is nothing different in how the exchange is handled, but the Intermediary will need to see a copy of the Trust Agreement, the Partnership Agreement, or a Corporate Resolution. HOW SHOULD THE EXCHANGER’S NAME BE VESTED IN THE DEED? To have a valid exchange, the Exchanger’s vesting should be exactly the same in the Phase II transaction as it is in the Phase I. Therefore, if the Exchanger owns the relinquished property in his/her personal names, the Exchanger should not try and put the replacement property into a family trust until after the exchange is closed. IS A 1031 EXCHANGE ALWAYS 100% TAX DEFERRED? No. For an exchange to be 100% tax deferred, the Exchanger must acquire a replacement property that is of equal or greater value and spend all of the net proceeds from the relinquished property. WHAT IS BOOT? Boot is defined as any NON LIKE KIND property received by the Exchanger in the exchange and it is taxable. 1) CASH BOOT: Cash Boot consists of any funds received by the Exchan
