Like Kind Exchanges

Real Life Monopoly

Monopoly

Growing up, my brother, cousins, nephew and I would play Monopoly all  night. We would stay up until the wee hours of the morning playing, building our pretend empires, arguing over who was cheating (Dan . . . ).

This past week, I played Monopoly for real. A year in the making, we closed on the sale of a $21,000,000 hotel. One of the more intense projects I’ve been involved with. In the days (really months) leading up to it there were countless things that had to be accounted for, prepared and crossed off huge checklists which seemingly got longer as we got closer to the day we were working towards. Even though the deal was done and we were close to the end there were last-minute side deals that had to be thought out, negotiated and documented as parties jockeyed for position. I found myself up late the night before sitting in my dining room answering emails, proofreading documents and much like the Monopoly marathons I had as a kid, making sure no one was cheating.  The morning of the closing was bright, sunny and not as hot as it could have been for an August day on Wall Street. Surely a good sign as we arrived from that far off land called Brooklyn.We came armed with accordion files, computers and cell phone chargers, The room was filled with paper. Lots of paper. Lawyers on phone arguing with other lawyers. Others leaning over laptop spreadsheets mulling over numbers; Title closers running back and forth from a huge copy machine down the hall from this glass cubicle which seemed to hold a hundred people. Everyone in my office worked incredibly hard. It started at 10:00 in the morning and broke up at 5:30 p.m. Business finally concluded 1:00 the next day.

This (The Closing by Jimmy Dyer) is what it looked like:

close

There is no rest for the weary as we are on to multiple replacement deals spanning from Manhattan to the Hamptons.

As to complexity and magnitude there was a  big sense of accomplishment, satisfaction and relief that we got it done.  Still not as fun as Monopoly as a kid . . . .

 

 

 

1031 Like Kind Exchanges and Flipping

Flipping A HouseInvestors cannot defer the gain resulting from the sale of a property that was purchased with the intent of rehabbing the property and reselling it. Courts look at a number of factors to determine the purpose of buying the property in order to qualify for deferral of gain under Section 1031 of the IRC. Some of these factors are the use of the property at the time of sale, the business of the property owner, improvements made to the property and how many properties the Seller has sold in the past.

Attached is an article by Marie Flavin, Esq. who is one of the most experienced attorneys when it comes to like-kind-exchanges.

Gmail – Shades of Gray in 1031 Flips