The Tax-Free Exchange Loophole: How Real Investors Can Profit From The 1031 Exchange

An excellent text on the 1031 transaction. Long on examples and step by step explanations, this book will explain the tricks and traps of 1031 real estate transactions.At times more than you want to know, the book finds its balance and leaves you with an in depth understanding of how to use the tax code to your advantage. It allowed me to question our intermediary about some aspects of our 1031 transaction without seeming foolish. If you are looking for a book that will raise your confidence in dealing with a complex tax free exchange this is the one.

The 1031 exchange is a tool I use personally and with clients. This is a good book to get the basics and examples of how to do this type of proceedure and the Starker (reverse) exchange. The book is a little dry and is packed with a lot of information. Don't sit down to read it unless you have a pen, notebook, calculator, and a good chunk of time. A 1031 is a really great tool, especially if you are a real estate agent.

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Jack Cummings has the right idea; there are many investors wish to "exchange" their property to defer paying income tax today. But this book fails to focus on HOW TO DO IT. What is really needed here are very specific items, such as sample forms for a variety of situations, which would provide the precise language to set up a typical actual transaction, such as one to be used between the principal and the intermediary. No such document is here in the book. One certainly needs to have specificity in language before turning over the proceeds of perhaps a $250K sale to an intermediary.Also, as a CPA, I have actually done some research on this topic; Mr. Cummings has omitted the easier way to effectuate a Starker Deferred 1031 Exchange, that being where the intermediary takes the cash and then buys the target property, which is then conveyed to the "seller" of the original property. In practice,I beleive that this approach is more feasible in practice for a number of reasons. But this approach isn't in the book. Also, the book contains a lot of what I consider to be "rookie" information, things that a realty pro already know about and are experienced in handling, such as negotiating with persons who you ultimately won't be able to close deals with.I really do not wish to be critical here, as there are no other main-line consumer guides I have located on the subject. Perhaps Mr. Cummings didn't include actual sample documents because he didn't want to get sued by the local Bar for "practicing law" or something like that. But one really needs to operate close to specific guidelines or the IRS can and will come after you.I feel reasonably sure that an author can put in some specific recommended document language for a variety of situations, as Prentice Hall and CCH do it all the time in their books for lawyers and CPAs.This is not to say that Mr. Cummings did not try hard; there are a lot of good things in his book. Unfortunately, there is also a lot of things which are also good, but extraneous to the main reason I and others probably purchased this book and there are, as mentioned above, quite a bit of fluff and filler. These last items include somethings which I consider to be out-and-out questionable advice, such as one example where he has suggesting that a seller ultimately allow his OWTB mortgate to become "subordinated", i.e. a 2nd trust.

Do not buy this book if you are looking for an intro to the basics of 1031 exchanges. It is not a "how-to" book. You should buy this book if you want ideas and examples of how to use exchanging in non-standard ways to make deals happen. If you want to expand your thinking on what is flexible when you start talking terms on a deal then this is a good book for you.

This book offers a basic introduction to tax-deferred exchanges in a simple format. Readers could benefit from more relevant examples; for example focusing far less on barter-for-property and more on resources and likely issues with a delayed exchange.

I have researched 1031 extensively ---this is the worst book I have read on the subject-- . I would not buy anything frm this author again. I returned it for my money back---- DONT WASTE YOURS!!!