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You are here: Home / Archives for Commercial space

Misconceptions 1031 exchange

November 20, 2020 by Randy Tibbetts

For 2020, here are our latest top 10 misconceptions we’ve found that the public has about 1031 Exchanges.

COVID-19 pandemic 1031 Extensions
Replacing Debt
The Term Like-Kind
Vacation and Second Homes Qualify
Reverse Exchange
Partial Exchange
Qualified Intermediary Advice
Identification Rules
Timing Deadlines
Loans, Equity & Tax Basis

COVID-19 Pandemic 1031 Extensions

IRS issued extensions that were granted for the 45 day Identification and 180 day exchange period for the COVID-19 pandemic are still in place
FALSE Misconceptions 1031 exchange
IRS extensions granted due to the COVID-19 pandemic ended July 15, 2020. Sign up here to be notified if the IRS grants further extensions. Be sure to check out our Coronavirus 1031 Resource page for the latest news.
Helpful link: Covid-19 1031 Exchange FAQs

Replacing Debt

You must replace the debt that you had on the Relinquished Property with at least the same amount of debt on the Replacement Property
FALSE Misconceptions 1031 exchange
Many taxpayers (and tax advisors) are under the misconception that the IRS mandates that they must have equal or greater debt on their 1031 Exchange Replacement Property (property they are purchasing). You do need to replace the VALUE of the debt paid off on the Relinquished Property. However, the debt does not have to be replaced with debt. The exchanger can always bring their own cash (from outside of the 1031 Exchange) to the closing table for the Replacement Property to offset any reduction in debt, or use other options.
Helpful link: See examples at Replacing debt in a 1031 Exchange

The Term Like-Kind

“Like-kind” is restricted to the same kind of real estate which means I must exchange the same type of property, for example, an apartment building for another apartment building
FALSE Misconceptions 1031 exchange
The term “like-kind” refers to the nature or character of the property, not its grade or quality. For this reason nearly all real property is like-kind to all real property, meaning that you can exchange an office building for an apartment complex, a strip mall, a warehouse, single family rental properties or even vacant land.
Helpful link: See what is qualified like-kind property?

Vacation and Second Homes Qualify

Vacation or second homes qualify for 1031 Exchange tax deferral
SOMETIMES
You can sell your investment real estate and reinvest the gain, tax deferred, to purchase your vacation or second home, however the challenge is making sure it will qualify as a 1031 investment property. Certain requirements must be met. Click the links below for details.
Helpful links: Do Vacation and Second Homes Qualify?
How to Buy Your Vacation Home with a 1031 Exchange
Strategically Buying Your Dream Vacation Home with a 1031 Exchange

Reverse Exchange

In a Reverse Exchange, it’s as simple as buying new 1031 Replacement Property first, as long as my Relinquished Property is sold within 180 days
FALSE Misconceptions 1031 exchange
In concept the Reverse Exchange is simple, but in execution, there are details and rules that must be followed. In a Reverse Exchange, you cannot own your Replacement and Relinquished Properties at the same time. Many do not realize that that title to their new Replacement Property must be “parked” with an EAT (Exchange Accommodations Titleholder) until their old Relinquished Property is sold. It takes considerable time to properly structure and execute a Reverse Exchange. Before you close on any property sale, reach out to IPX1031, your Qualified Intermediary, to ensure your 1031 Exchange is properly structured, timed and executed.

Partial Exchange

It’s not possible to do a partial 1031 Exchange
FALSE Misconceptions 1031 exchange
A 1031 Exchange does not need to be an all or nothing scenario. You can do a partial 1031 Exchange which qualifies for tax deferral under Section 1031 of the Tax Code. If you purchase property lower in value or take a portion of the cash from the closing of the sale and only invest a portion of your proceeds towards a 1031 Exchange, you will have a partially tax deferred transaction rather than deferring all of your taxes. You will pay taxes on those funds not reinvested (commonly referred to as boot).

Qualified Intermediary Advice

A Qualified Intermediary gives tax and legal advice as part of their role
FALSE
While a Qualified Intermediary (QI) like IPX1031 is generally needed to create the “exchange of properties” and safeguard the exchange funds, QIs cannot provide tax or legal advice. IPX1031 cannot act as your advisor to structure your exchange transaction. While IPX1031 provides tools like our Capital Gains Estimator, always talk to your legal and tax advisors to determine what is best for your individual situation.

Identification Rules

I can change my identification after day 45 if that property has been sold to someone else and if needed, I can buy other 1031 Replacement properties that I didn’t identify
FALSE
The 1031 ID rules are strict and very important. We’ve seen many exchanges fail due to exchangers not following these 1031 Exchange identification rules. From the day your Relinquished Property closes, you have 45 calendar days to identify potential replacement property using the 3 Property Rule (most common), 200% Rule or 95% exception. You can change your identification at any time prior to the expiration of the identification period. If you did not identify a property in the proper time period, that property does not qualify for 1031 treatment. In the case of an identified property no longer for sale, if you have no other identified property and it’s after day 45, your exchange will fail. Remember to start your search for identification property early – even before your Relinquished Property closes – so you have a head start in the identification process.

Timing Deadlines

I have 45 days to identify then an additional 180 days to close
FALSE
The 45 and 180 day periods are not separate time periods. All must happen within a total of 180 calendar days. From the time your Relinquish Property closes, you have 45 calendar days to identify your Replacement Property. Then you must buy and close on any identified Replacement Property(ies) that you want to purchase in your exchange within a total of 180 calendar days. Timing rules are strict and cannot be extended even if the 45th day or 180th day falls on a Saturday, Sunday or legal holiday. They may, however, be extended by up to 120 days if the Exchanger qualifies for a disaster extension under Rev. Proc. 2018-58.
Helpful link: Deadlines and Identification Requirements

Loans, Equity & Basis

Loan balance or equity increases tax basis in a 1031 Exchange
FALSE
The term “basis” is the cost of a property for tax purposes. When you sell a property, the difference between the sales price and the adjusted basis in the property will determine the amount of capital gain which is taxable. Loans or equity are typically not relevant and do not factor into basis.

Filed Under: commercial, Commercial Property, Commercial space Tagged With: 1031 exchange, False 1031 exchange, house swap, investment, real estate investing, tax saving

Commercial storage space MA

September 30, 2020 by Randy Tibbetts

Underground parking with over 4500 square feet of space. Indoor storage option. 20 parking spaces. Bring your needs and ideas. This commercial storage space is located at 1820 Turnpike St. in North Andover MA 01845.

This 4500 sq ft space would need to be leased out to one tenant as it would not be practical to divide the space into sections. Individual car storage is an option as well. Contact us today about this commercial storage space.

North Andover Storage Space Available

There is no one size fits all for business storage. The needs of a pharmaceutical rep are different than the needs of a law office. Their needs begin differently, and they develop differently, and it is important to make sure that you have a business storage solution that will recognize how your business is developing and takes the appropriate steps to help you grow. Underground storage at 1820 Turnpike Street North Andover can be your business storage solutions for businesses of all shapes and sizes and are here to help your business develop and grow the way that makes the most sense to you.

Commercial Storage Space MA

The average size of a storage facility in the U.S. is 46,000 square feet, and the average revenue per square foot, according to a 2008 report from the SSA, varies from $8.40 for a traditional facility to $11.07 for a Bix Box facility.

Storage for automobiles

Covered Car Storage
With a roof protecting your vehicle from the sun and other elements, covered car storage falls between indoor and outdoor storage. This option is more affordable than indoor storage and but also provides better protection against sun, snow, hail, and other elements that could damage your vehicle. If you don’t live in an area with harsh weather or strong storms, this is a great option for storing your car.

Storing a Car Over the Winter
Classic car and sports car owners often put their vehicles away into storage during the winter. A storage unit provides a safe storage environment for these cars during the off-season and means they won’t get in the way of vehicles that will be used during winter months.

 

Filed Under: commercial, Commercial Property, Commercial space Tagged With: 1820 Turnpike, car storage, special use, storage, underground parking

Commercial space LEASED to Verdi Studio

February 4, 2020 by Randy Tibbetts

Tibbetts Real Estate Group recently leased space to Verdi Studio, a Boston Portrait photographer and branding specialist. Verdi Studio has leased 1000 square feet at 4 High Street Suite 307 North Andover MA. 4 High Street is part of the East and West Mill complex in North Andover which has grown quickly into a hub or campus community comprising of small to large businesses and a number of food establishments.

Contact Ksenia ksenia@verdistudio.com  for more information or visit www.verdistudio.com

“At Verdi Studio Portraits we believe that every woman deserves a beautiful photograph of herself. Times moves a hundred miles a minute in this busy world and we invite you to slow down and take the time to discover who you truly are and that you deserve to exist in photographs. We want to reveal to you your inner goddess. We want to help you discover what is holding you back from seeing her.

We know that one size does not fit all. Real women have wrinkles and curves and they are juggling careers, households, kids, and relationships. We photograph every woman and offer her an unparalleled pampering photoshoot experience. We are experts in lighting and posing. We know that prepping for a photoshoot can be stressful, so we are here every step of the way to ensure it is a pleasurable process. We take care of everything: wardrobe planning, hair and makeup artistry and custom wall art design. We know what beautiful looks like and we will find your beautiful!”

Verdi Studio

Filed Under: Commercial Property, Commercial space Tagged With: Commercial lease, Leased, mill space

Retail space LEASED to Sacred Soul Therapy North Reading

January 28, 2020 by Randy Tibbetts

Tibbetts Real Estate Group has lease 1000 square feet of retail space to Sacred Soul Therapy at 161 Main Street North Reading MA. Cathy Rowe is the proprietor. Cathy is a licensed psychotherapist and dance expressive therapist with over 20 years experience. Her strong clinical skills combined with her Holistic healing approaches creates a Wholeness of healing for each individual; Body, Mind and Soul. This synergistic approach to Healing assists each individual to release various levels of trauma, emotional unbalance and blocks, and step into one’s best life!

https://www.sacredsoultherapy.org/

 

Filed Under: Commercial space, Real Estate, Real Estate News Tagged With: Commercial lease, Main street business, retail space, small business, start up businesses

3000 square feet leased to Foresight Regulatory Strategies

December 7, 2019 by Randy Tibbetts

Tibbetts Real Estate Group has leased 3000 square feet of office space to Foresight Regulatory Services at 1820 Turnpike Street in North Andover MA. Foresight, currently on Ballardvale in Wilmington MA will be taking over the space in January 2020.

Foresight Regulatory Strategies, Inc. (FRS) is a team of professionals who provide support to medical device, pharmaceutical and biologic companies for a variety of clinical, quality and regulatory activities during all phases of the product life cycle.

Founded in January 1997 by William Gleason, O.D., and Ellen Beucler,  FRS is a team of scientific professionals with a clear understanding of the global standards and requirements necessary during product development.  Members of this team have worked together for over twenty-five years and have a proven track record of faster and more cost-effective product approvals.

Filed Under: Commercial Property, Commercial space Tagged With: 1820 Turnpike, Biotech leased, North Andover office, office space, office space leased

North Andover retail space for lease

March 26, 2019 by Randy Tibbetts

There are a number of great locations for North Andover retail space for lease right now.  Main Street in Downtown North Andover currently has commercial retail space available on Main Street and the First & Main shopping center.  Osgood Street near Butcher Boy has a number of different spaces that can be utilized for spa, medical or clothing boutiques.  Turnpike Street offers a prime location with established anchor tenants at the Eaglewood Shops along RT 114. Contact us for any additional details regarding commercial retail space in North Andover, retail space availability in North Andover and/or if you may be in the market to purchase a North Andover retail space for lease for long term investment. Retail space available on RT 114 in North Andover MA.

North Andover retail space for lease

North Andover retail space for lease

  • Main Street : 700 – 2500 – 5000 square feet starting at $18 PPSF with varying terms
  • Osgood Street : 2000 – 9000 square feet starting at $18 PPSF with varying terms
  • Turnpike Street : 2800 square feet PPSF upon request

A Lease in Retail means a contract by which one party conveys land, property, services, etc. to another for a specified time, usually in return for a periodic payment. A legal document outlining the terms under which one party agrees to rent property from another party. A lease guarantees the lessee (the renter) use of an asset and guarantees the lessor (the property owner) regular payments from the lessee for a specified number of months or years. Both the lessee and the lessor must uphold the terms of the contract for the lease to remain valid.

North Andover retail space for lease

Retail design is a very specialized discipline due to the heavy demands placed on retail space. Because the primary purpose of retail space is to stock and sell product to consumers, the spaces must be designed in a way that promotes an enjoyable and hassle-free shopping experience for the consumer. For example, research shows that male and female shoppers who were accidentally touched from behind by other shoppers left a store earlier than people who had not been touched and evaluated brands more negatively.  The space must be specially-tailored to the kind of product being sold in that space; for example, a bookstore requires many large shelving units to accommodate small products that can be arranged categorically while a clothing store requires more open space to fully display product.

Filed Under: Commercial Property, Commercial space Tagged With: end cap space, Main Street retail, retail business, retail space for lease

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Randy Tibbetts

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617.233.2103 randy.tibbetts@tibbettsrealestate.com

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Randy Tibbetts is a real estate broker providing clients with professional residential & commercial real estate services in Massachusetts.

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Randy Tibbetts has been building relationships for 25 years while providing professional real estate services for clients who are searching for residential and commercial real estate in Massachusetts.

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North Andover MA 01845
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