Written by Aaron LaRue

More about Aaron LaRue

Aaron LaRue is a real estate and financial services professional. He has spent his career building technology products at places like Zillow and SoFi, and is passionate about making it easier for investors to buy and sell real estate.

Can you 1031 exchange a vacation home?

Because the 1031 Exchange rules permit owners to use the property part of the year, exchangers can have a cash-flowing, appreciating investment that also serves as their semi-permanent vacation property.

Aaron LaRue

1031 Improvement Exchange

Learn how a 1031 Improvement Exchange can enable a value-add real estate investment strategy while also deferring capital gains taxes.

Aaron LaRue

1031 Exchange Examples

Review some common 1031 exchange examples and take advantage of our profit-generating ideas to use the 1031 Exchange to make your property portfolio more profitable.

Aaron LaRue

What are the disadvantages of a 1031 exchange?

The 1031 Exchange is a great way for businesses and investors to take advantage of the additional value of their real estate and put it into their next purchase, but are there tradeoffs to consider?

Aaron LaRue

What Happens to Depreciation in a 1031 Exchange?

Depreciation recapture is a process then enables the IRS to collect taxes on the financial gain you have made from the sale of an asset. Exactly what depreciation recapture rate will apply will depend on your individual circumstances.

Aaron LaRue

Form 6252: Report an Installment Sale

Use this form to report income from an installment sale on the installment method.

Aaron LaRue

IRS Form 8949: Report Realized Gains from an Exchange

Learn how to use Form 8949 to report direct profit from a sale in which a 1031 Exchange was used.

Aaron LaRue

California Franchise Tax Board Form 593

Learn more about how to report tax withholdings on real estate sales in the state of California with the Form FTB 593.

Aaron LaRue

IRS Form 4797: Report the Sale of Business Property

Learn how to use Form 4797 to report gains realized in the event of recaptured profit from an exchange.

Aaron LaRue

IRS Form 8824: Report an Exchange on Your Tax Return

Learn about IRS Form 8824 and how to report 1031 Exchanges to ensure tax deferral on capital gains.

Aaron LaRue

What Is a 721 Exchange? Deferring Taxes With An UPREIT

Discover the benefits of 721 exchanges, allowing property owners to defer capital gains taxes when converting real estate holdings into shares of a partnership or REIT. Learn about the role of UPREITs in these transactions and how to effectively navigate the process.

Aaron LaRue

What is a 1031 Exchange?

A 1031 exchange allows real estate investors to sell a property and reinvest the proceeds into a new purchase and defer capital gains taxes. We dive deep into tax deferred like-kind exchanges, covering how 1031 exchanges work, the rules and timelines, and when it makes sense to do an exchange.

Aaron LaRue

Primary Residence Capital Gains Tax: Section 121 vs. 1031 exchange

Explore strategies for reducing capital gains tax on the sale of your primary residence. Understand the difference between Section 121 and a 1031 exchange, how to qualify, the benefits, and more. We cover both strategies in detail, compare them, and discusses common misconceptions and pitfalls.

Aaron LaRue

What is a Qualified Intermediary?

Discover the crucial role of a qualified intermediary in a 1031 exchange to ensure a successful transaction. This article covers the intermediary's responsibilities, benefits of using one, their role in tax deferral, and potential risks involved.

Aaron LaRue