December 3, 2021

SVP John Starling answers two burning 1031 Exchange questions

Can you sell your property to a related party and still qualify for a 1031 tax deferred exchange? Can you buy your replacement property from a related party and still qualify for an exchange? John Starling, Senior Vice President at Northern 1031 Exchange, answers these important questions in a 2018 edition of the New England Real Estate Journal.

Starling discusses what the definition of a related party is as determined by the IRS, along with the rules that must be followed to exchange to/from a related party. He further outlines when a related party exchange is allowed and scenarios when it is disallowed. The IRS is adamant that there are only limited exceptions and it has been successful in challenging related party exchanges, so it pays to make sure you are well-versed in these guidelines before deciding on a related party exchange.

Latest Posts

Business fraud is on the rise

Criminals are more active than ever when is comes to tricking small business owners into handing over cash or sensitive banking information. It’s estimated that five percent of business revenue is lost to fraud each year, according to the Association of Certified Fraud Examiners. Learn more about how you can protect your business from fraud.

Read More arrow-right icon

About Northern Bank & Trust Company

Northern Bank is a full-service bank dedicated to providing practical, common sense financial solutions to help our customers live their lives and grow their businesses. From deposit products to loans to payment and collections services, we work hands-on with our entrepreneurial customers, both locally and across the country, to provide the financial support they need to realize their personal and business goals. Founded in 1960, Northern Bank has assets of $2.87 billion with 13 locations serving communities throughout Middlesex County. Northern Bank is a Member of the FDIC, and an Equal Housing Lender.

Ready to take the next step?
We're here to help!

Contact us now to learn more about how Northern Bank can help you realize your goals and dreams.