稅例第1031 條 ─ 免稅交換入息樓宇

賣出入息樓宇所賺了的「資本增值」(CAPITAL GAIN) ,一定要在當年交稅(聯邦稅為20%,另加州稅,曾折舊的金額稅率為25%)。如要延稅,則必須用稅例第1031 條作免稅(其實是延稅)交換,將原來物業的資本增值和折舊,轉到新交換的入息樓宇上。

使用1031交換條例,必須十分謹慎,最好是有這方面經驗的會計師和地產經紀幫助。此外,不論是作「同時交換」(SIMULTANEOUS EXCHANGE) ,或作較常用的「延遲交換」(DELAYED EXCHANGE) ,通常都需要僱用一個「被認可的中間人」。「被認可的中間人」英文叫做QUALIFIED INTERMEDIARY,這類公司也叫做「促成人」(FACILITATOR) 或「幫助人」(ACCOMODATOR) ,它是一個獨立 (即與投資者沒有關系) 的機構,有些「中間人」是專門幫忙投資者作免稅交換的獨立公司,有些則是「產權公司」(TITLE COMPANY) 屬下的附屬公司

1031 稅例主要條款

  1. 需要以「同類」(LIKE-KIND)物業作交換。但「同類」的定義很廣闊,只要是賺取租金入息的物業便可。故此,柏文公寓可以換貨倉,空地可以換單一住宅,辦公大樓可換柏文公寓…..。在美國以外的物業不能作交換。 2. 需要換相等或更高市值的物業,而且淨值應全部放入新交換的物業上,即不能減少抵押貸款,否則有部份會成為「靴子」(BOOT) ,需要付資本增值稅。3. 需要按45/180 天條例,下面再作解釋。4. 需要由交易開始便申明為1031交換,而整個新舊物業交易過程都按交換)不是買賣)來進行。5. 需要避免「相等收取」(CONSTRUCTIVE RECEIPT) 情況,即交換者不能有機會取得交易的款項,故必須由一個「被認可的中間人」代辦。

45/180天條例

1031條例?面,有兩個時期十分重要。第一個是「訂明期」(IDENTIFICATION PERIOD) ,乃由原來物業交易完成開始的四十五天。第二個是交換期(EXCHANGE PERIOD),是由原來物業交易完成開始的一百八十天。這兩個日期十分嚴格,遲一天都會導致交換失敗,而失去延稅優惠。

請注意﹕一百八十天條例其實是「一百八十天或報稅限期兩者之間較早的日期」,所以在接近年終作1031 交換,有可能由原來物業交易完成開始,至明年四月十五日之間沒有一百八十天,在這個情況下,應該向稅局申請延期報稅。

訂明 (IDENTIFICATION) 注意要點

不論原來物業數目多少,在訂明期內,交換人必須按以下三個條例中的任何一項,以書面訂明交換物業﹕

  1. 三個物業條例﹕不論訂明物業之總值,訂明不超過三個物業。或2.兩倍價值條例﹕不論訂明物業之數目,訂明不超過原來物業價值兩倍的物業。或3. 百分之九十五條例﹕不論訂明物業之數目,將來真正交換物業的價值不少於訂明物業價值總和的百分之九十五。

訂明物業時,必須清楚地以書面在訂明期內通知「被認可的中間人」。

「中間人」提供的服務,可以全部用電話、傳真和郵件進行,故在三藩市地區以外的人,也可以用以上的中間人。他們收費一般分為兩種,一種是幾百元費用加上Escrow 帳戶內的利息由中間人公司收取;另一種是比較高的費用(大約一千元以上),但交換人可得到Escrow 帳戶內的利息。收費詳情應向中間人公司查詢。

「倒轉交轉」(REVERSE EXCHANGE)

通常做1031交換,都是先將本身物業交換出去,然後按上述45/180天日期的規則,去交換另一個物業。但是,在有些情況下,可能會先將新的物業交換進來,然後才將本身物業交換出去,這個情況叫做「倒轉交換」(REVERSE EXCHANGE) 。在二零零年十月二日,國稅局頒報了REVENUE OCEDURE 2000-37,正式承認「倒轉交換」的合法性。

REVENUE PROCEDURE 2000-37內,規定要合法地進行「倒轉交換」,必須符合兩個要求﹕

  1. 納稅人必須簽定一個「合資格的交換安排」文件(QUALIFIED EXCHANGE ACCOMODATION ARRANGEMENT或簡稱為"QEAA");2. 納稅人必須聘用一個「交換產權持有人」(EXCHANGE ACCOMODATION TITLEHOLDER 或簡稱為"EAT")

QEAA 是什麼安排?

要符合QEAA安排的需要,必須按以下做法﹕

  1. 該物業要用「交換產權持有人」(“EAT")名義擁有。2. 納稅人需要有真正的交換意圖。3. 納稅人與EAT在EAT擁有產權五天內,被此定立書面QEAA文件協議。4. 交換出去的物業必須在四十五天內被指定。

    5. 整個交換必須在EAT擁有產權後一百八十天內完成。

由於倒轉交換相當復雜,請務必與專業人事商議。

進行1031交換之後如何報稅?

雖然1031交換為業主拖延資金增值稅(CAPITAL GAIN TAX),但在開始進行1031交換的報稅年度,亦即是原來物業完成交換的那年,用8824報稅表格申報。假如在報稅限期(四月十五日)之前,仍未能完成新物業交換,便應該使用4868報稅表申請延期)請參考上面「45/180天條例」一段)。

除了8814表格外, 亦有可能要填4797 表格和SCHEDULE D。請與閣下會計師商議。

兩個交換之間需要隔開多長時間?

有些朋友在完成了1031交換之後,短期內想再作交換,兩個交換之間需要隔開多長時間呢?

1031稅例內沒有明文規定兩個交換之間需要隔多少時間,但1031稅例很清楚說明用於1031交換的物業,不論是「換入」的物業,抑或是「換出」的物業,都要是被持有(HOLD)作為投資用途的,持有的意思就是業主擁有一段時候,而不是短期內便換入和換出。假如持有的時間太短,便不屬於持有,而是屬於短期買賣交易,這類業主變為「以物業買賣作生意者」(DEALER),並且這類物業成為「庫存物業」(INVENTORY),DEALER和庫存物業是不能作1031交換的。

那麼要持有多少時間才不會被當作「以物業買賣作生意者」和「庫存物業」呢?稅例沒有明文規定,但一般業者認為起碼應該持有一年或以上,才算是顯示了業主持有的本意(INTENT),這個結論是根據一系列IRS REVENUE RULING,和一系列稅務法庭的官司,都是與持有期太短(幾個月)有關的。

第二住宅是否可以交換?

擁有出租物業的朋友,都會知道稅例第1031條,讓你將出租物業交換,以達到增值延稅的好處。但假如你的物業不是出租,乃是屬於第二住宅(second home),可能是自己作為渡假屋,亦可能是給親戚居住,沒有收租,因此不成為出租物業,這樣的物業是否可以作1031交換呢?

幾年前國稅局澄清了第二住宅交換的問題,確定了第二住宅在符合某些條件時,一樣可以當作出租物業交換。以下為你講解這些條件。

第一,現有的物業需要持有起碼24個月。第二,在該24個月之內,每一年起碼有14天是以市場租金出租。第三,屋主自己使用這個物業的時間,每一年不超過14天,或者不能超過租出去時間的十分之一。交換回來的物業也要符合以下的資格:第一,交換物業要起碼持有24個月。第二,交換回來的物業,每一年起碼有14天或以上出租。第三,屋主自用的時間,每年不能超過14天,或出租日子的十分之一。

假如符合以上的條件,即使房子不是整年都出租,也一樣可以利用1031交換稅例去取得增值延稅的優惠。(see below – Second Home 作1031交換特別稅例)

交換前後要出租多久?

稅例第1031條,讓擁有出租物業的業主交換其他出租物業,以達到延稅的目的。有些業主本來物業是自住的,現在準備改為出租物業,到底出租物業要出租多久才符合資格呢?

有些房屋經紀為了盡快幫忙業主出售物業,建議只要出租幾個月便已經符合出租物業的資格,這是相當危險的,因為要成為出租物業,國稅局必須認為物業真正是作投資的用途,國稅局考慮的因素,當然包括出租期的長短。一向是作自住用途,現在只是出租幾個月是不夠的,我建議起碼應該出租一年甚至更長的時間,才能證明該物業的確是作出租的用途。

國稅局其他考慮的因素,除了擁有物業的時間長短,也包括業主是否真正利用該物業作投資之用。交換回來的物業,也是需要作出租用途,我建議起碼出租一年,最好是兩年。之後要改變用途是可以的,但同樣是要讓國稅局相信你擁有這個物業的目的是作出租和投資用途,否則1031交換會比稅局否定,到時便需要為增值付稅了。

同時享用增值免稅與交換延稅

假如你擁有一個房地產,以前是作出租用途,後來自己搬入去住了起碼兩年,現今已經出租了起碼一年,所以房地產仍算是出租投資物業。由於這個物業多年前買入,如今已經增值了不少,假如賣出的話,增值將超過屋主自住的免稅額,有什麼辦法可以將整個增值都免稅或延稅呢?

出租物業當然可以利用稅例第1031條作交換,增值便可以延稅,但由於過去五年內在該物業曾自住了兩年,是否亦可以同時享用業主每人25萬增值免稅金額?國稅局曾出了一份通告,正式承認出租物業假如因業主曾在五年內自住了兩年,可以得到25萬增值免稅,假如有增值是超過免稅額,可以同時利用稅例第1031條將其餘的增值延稅。

舉個例,十多年前業主購買了一個物業,開始時自住,後來多年出租,如今業主已經收回來自住了兩年,業主現今準備出售,但增值65萬,超出了夫婦50萬的免稅額。由於該物業現在是作出租用途,可以用1031交換延稅,65萬增值有50萬可以利用自住豁免額免稅,餘下15萬增值可以利用01031交換延稅。

外國人進行1031交換

外國人在美國擁有出租物業,是否能夠利用1031交換延稅呢? 答案是:一樣可以的,但是由於外國人出賣房屋時,稅例規定 買家要將賣價的15%扣起,並且交入國稅局,因此,外國人進行1031交換的時候,假如要全部增值都延稅的話,必須自己放入這個15%的預繳稅金額,否則無法全部增值延稅。

外國人是否可以申請豁免繳納預繳稅呢?理論上,是可以憑著遞交8288-B稅表申請豁免預扣稅,在這段等待稅局批准的時間內,這個15%預扣稅雖然要扣起,但暫時無須交入國稅局。國稅局可能要90天才宣佈是否接納申請,因此,這位外國人業主假如要在90天之內完成交換,仍是需要自己放入這15%的資金去完成交換。

即使國稅局不接納豁免申請,將來外國人業主可以在報稅時將預繳稅取回,但自己仍是要先放入這個15%預繳稅的金額,才能成功地進行交換。

Second Home 作1031交換特別稅例

Revenue Procedure No. 2008-16 (IRS Rev Procedure – 2008-16)

Internal Revenue Service (IRS)

Revenue Procedure (Rev. Proc.)

Released: February 15, 2008

Published: March 10, 2008

Safe Harbor for Like-Kind Exchange of Dwelling Unit

SECTION 1. PURPOSE

This revenue procedure provides a safe harbor under which the Internal Revenue Service (the “Service”) will not challenge whether a dwelling unit qualifies as property held for productive use in a trade or business or for investment for purposes of Section 1031 of the Internal Revenue Code.

SECTION 2. BACKGROUND

.01 Section 1031(a) provides that no gain or loss is recognized on the exchange of property held for productive use in a trade or business or for investment (relinquished property) if the property is exchanged solely for property of like kind that is to be held either for productive use in a trade or business or for investment (replacement property). Under Section 1.1031(a)-(1)(a)(1) of the Income Tax Regulations, property held for productive use in a trade or business may be exchanged for property held for investment, and property held for investment may be exchanged for property held for productive use in a trade or business.

.02 Rev. Rul. 59-229, 1959-2 C.B. 180, concludes that gain or loss from an exchange of personal residences may not be deferred under Section 1031 because the residences are not property held for productive use in a trade or business or for investment.

.03 Section 2.05 of Rev. Proc. 2005-14, 2005-1 C.B. 528, states that Section 1031 does not apply to property that is used solely as a personal residence.

.04 In Moore v. Commissioner, T.C. Memo. 2007-134, the taxpayers exchanged one lakeside vacation home for another. Neither home was ever rented. Both were used by the taxpayers only for personal purposes. The taxpayers claimed that the exchange of the homes was a like-kind exchange under Section 1031 because the properties were expected to appreciate in value and thus were held for investment. The Tax Court held, however, that the properties were held for personal use and that the “mere hope or expectation that property may be sold at a gain cannot establish an investment intent if the taxpayer uses the property as a residence.”

.05 In Starker v. United States, 602 F.2d 1341, 1350 (9th Cir. 1979), the Ninth Circuit held that a personal residence of a taxpayer was not eligible for exchange under Section 1031, explaining that “[it] has long been the rule that use of property solely as a personal residence is antithetical to its being held for investment.”

.06 The Service recognizes that many taxpayers hold dwelling units primarily for the production of current rental income, but also use the properties occasionally for personal purposes. In the interest of sound tax administration, this revenue procedure provides taxpayers with a safe harbor under which a dwelling unit will qualify as property held for productive use in a trade or business or for investment under Section 1031 even though a taxpayer occasionally uses the dwelling unit for personal purposes.

SECTION 3. SCOPE

.01 In general.  This revenue procedure applies to a dwelling unit, as defined in section 3.02 of this revenue procedure, that meets the qualifying use standards in section 4.02 of this revenue procedure.

.02 Dwelling unit. For purposes of this revenue procedure, a dwelling unit is real property improved with a house, apartment, condominium, or similar improvement that provides basic living accommodations including sleeping space, bathroom and cooking facilities.

SECTION 4 . APPLICATION

.01 In general. The Service will not challenge whether a dwelling unit as defined in section 3.02 of this revenue procedure qualifies under Section 1031 as property held for productive use in a trade or business or for investment if the qualifying use standards in section 4.02 of this revenue procedure are met for the dwelling unit.

.02 Qualifying use standards.

(1) Relinquished property. A dwelling unit that a taxpayer intends to be relinquished property in a Section 1031 exchange qualifies as property held for productive use in a trade or business or for investment if:

(a) The dwelling unit is owned by the taxpayer for at least 24 months immediately before the exchange (the “qualifying use period”); and

(b) Within the qualifying use period, in each of the two 12-month periods immediately preceding the exchange,

(i) The taxpayer rents the dwelling unit to another person or persons at a fair rental for 14 days or more, and

(ii) The period of the taxpayer’s personal use of the dwelling unit does not exceed the greater of 14 days or 10 percent of the number of days during the 12-month period that the dwelling unit is rented at a fair rental.

For this purpose, the first 12-month period immediately preceding the exchange ends on the day before the exchange takes place (and begins 12 months prior to that day) and the second 12-month period ends on the day before the first 12-month period begins (and begins 12 months prior to that day).

(2) Replacement property. A dwelling unit that a taxpayer intends to be replacement property in a Section 1031 exchange qualifies as property held for productive use in a trade or business or for investment if:

(a) The dwelling unit is owned by the taxpayer for at least 24 months immediately after the exchange (the “qualifying use period”); and

(b) Within the qualifying use period, in each of the two 12-month periods immediately after the exchange,

(i) The taxpayer rents the dwelling unit to another person or persons at a fair rental for 14 days or more, and

(ii) The period of the taxpayer’s personal use of the dwelling unit does not exceed the greater of 14 days or 10 percent of the number of days during the 12-month period that the dwelling unit is rented at a fair rental.

For this purpose, the first 12-month period immediately after the exchange begins on the day after the exchange takes place and the second 12-month period begins on the day after the first 12-month period ends.

.03 Personal use. For purposes of this revenue procedure, personal use of a dwelling unit occurs on any day on which a taxpayer is deemed to have used the dwelling unit for personal purposes under Section 280A(d)(2) (taking into account Section 280A(d)(3) but not Section 280A(d)(4)).

.04 Fair rental. For purposes of this revenue procedure, whether a dwelling unit is rented at a fair rental is determined based on all of the facts and circumstances that exist when the rental agreement is entered into. All rights and obligations of the parties to the rental agreement are taken into account.

.05 Special rule for replacement property. If a taxpayer files a federal income tax return and reports a transaction as an exchange under Section 1031, based on the expectation that a dwelling unit will meet the qualifying use standards in section 4.02(2) of this revenue procedure for replacement property, and subsequently determines that the dwelling unit does not meet the qualifying use standards, the taxpayer, if necessary, should file an amended return and not report the transaction as an exchange under Section 1031.

.06 Limited application of safe harbor. The safe harbor provided in this revenue procedure applies only to the determination of whether a dwelling unit qualifies as property held for productive use in a trade or business or for investment under Section 1031. A taxpayer utilizing the safe harbor in this revenue procedure also must satisfy all other requirements for a like-kind exchange under Section 1031 and the regulations thereunder.

SECTION 5 . EFFECTIVE DATE

This revenue procedure is effective for exchanges of dwelling units occurring on or after March 10, 2008. No inference is intended with respect to the federal income tax treatment of exchanges of dwelling units occurring prior to the effective date of this revenue procedure.

SECTION 6 . DRAFTING INFORMATION

The principal author of this revenue procedure is J. Peter Baumgarten of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information regarding this revenue procedure contact Mr. Baumgarten at (202) 622-4920 (not a toll free call).

The 9 Steps of a Typical Reverse 1031 Exchange Transaction

In total, there are nine steps that make up a reverse 1031 exchange. Viewing these nine steps will give you a good sense of the effort, energy, and resources that are involved in a basic reverse 1031 exchange.

  1. The first step of your reverse exchange is to develop a contract to acquire a suitable replacement property and arrange financing. Financing arrangements for reverse exchanged are fairly flexible: You can advance funds or choose third-party financing or seller financing.
  1. You then enter into a written agreement—a qualified exchange accommodation agreement (QEAA)—with your exchange accommodation titleholder (EAT) before your titleholder acquires qualified indicia of ownership. This written agreement may contain different provisions depending on which type of financing you arrange and also exactly how your EAT intends to hold the parked property.
  1. The third step is for your EAT to acquire title to the replacement property. This can only occur after a financing arrangement has been obtained by you. In many cases, your EAT will acquire title through a single purpose entity (SPE). This SPE is designed to minimize risk and guarantee that the assets involved will not be commingled with other assets of the EAT.
  1. You formally identify the relinquished property in either the QEAA or in a separate notice. The property (or properties) must be identified within 45 days of your EAT obtaining title to the parked property.
  1. In the fifth step, your EAT may lease the parked property to you provided that the lease period doesn’t exceed the safe harbor parking period. The lease will allow you to take control of the parked property in advance.
  1. Identify a buyer for the relinquished property and execute a formal sales contract with this buyer.
  1. You enter into a new agreement with a qualified intermediary (QI). The QI will acquire the right to transfer the title of the relinquished property to the new buyer. Also, the QI will obtain the right to gain title to the parked property.
  1. Your QI will require that you convey the relinquished property to the buyer through a deed. The buyer will then transfer the exchange funds directly to the QI. Subsequently, the QI will use these funds to acquire the parked property from the EAT. At this time, your EAT will identify any closing costs or other liabilities that need to be satisfied immediately and will use a portion of the exchange funds to cover these expenses.
  1. In the final step, the EAT deeds the parked property directly to you. Your QI will oversee this part of the transaction. Once you’ve received your deed, the 1031 exchange is finished.

Reporting Your 1031 Exchange for Income Tax Purposes

Your 1031 exchange transaction should be reported on your Federal income tax return for the year in which your 1031 exchange began.  For example, if you sold your relinquished property in 2018 and subsequently acquired your like kind replacement property in 2019 your 1031 exchange would be reported on your 2018 Federal income tax return.

It is extremely important that you file an extension of time to file your Federal income tax return, then complete your 1031 exchange transaction, and finally file your Federal income tax return and report your 1031 exchange transaction on IRS Form 8824 if your 1031 exchange transaction straddles two (2) income tax years.  Read more about the 1031 exchange deadlines.

IRS Form 8824 — Like Kind Exchanges 

IRS Form 8824 requires that you provide the IRS with the description of your relinquished and replacement properties, the date your relinquished property was acquired by and conveyed to the buyer, the date the like-kind replacement property was identified to your Qualified Intermediary by you, and the date the like-kind replacement property was acquired by and conveyed to you.  These last two (2) items are to ensure that you have complied with the 45 calendar day identification rule and the 180 calendar day 1031 exchange period.  IRS Form 8824 also asks for any related party information.

IRS Form 8824, Part III, is used to calculate your gain on the disposition (sale) of your relinquished property and the adjusted cost basis of your like-kind replacement property.  The fair market value of your relinquished and like-kind replacement properties is required as well as any liabilities that were paid off (given up) on the disposition (sale) of your relinquished property and received (new debt assumed) on the purchase of your like-kind replacement property, your cost of sale expenses for both, any cash (boot) received and paid, the cost basis of your relinquished property and non-like-kind property paid (given up), and any fair market value of non-like-kind properties received and paid (given up).

IRS Form 4797 — Reporting the Gain

Any taxable gain recognized will be reported on IRS Form 4797 or Schedule D depending on the character of the relinquished property.  Your taxable gain must be allocated between ordinary income depreciation recapture, unrecaptured Section 1250 taxable gain, Section 1231 taxable gain, and capital gain.

IRS Form 6252 — Installment Sale Treatment

You may be able to report all or a portion of the taxable gain under the installment sale basis pursuant to Section 453 of the Internal Revenue Code if you accepted a seller carry back note as part of the consideration from the buyer of your relinquished property by completing IRS Form 6252.  There are numerous exceptions for installment sale treatment so always consult with your tax advisor before proceeding with your transaction.

Failed 1031 Exchanges

You may still qualify to defer your capital gains if your 1031 exchange fails.  It is possible that you may have a partial tax-deferred exchange or may be able to defer the income taxes from the failed 1031 exchange into the following income tax year under the installment sale rules.

It will depend on your specific situation and when you have the right to access your 1031 exchange funds.  Read our article entitled “Year End Tax Planning with a Failed 1031 Exchange" for more information.

Federal Statute of Limitation

The Federal statute of limitations for income tax related audits is three (3) years.  This means that the Internal Revenue Service has three (3) years from the date that your income tax return is filed to begin an audit of your income tax return.  The statute of limitations does not start running until you file your income tax return.

There are certain exceptions to the three (3) year statute of limitations, including whether there was any significant under-reporting of taxable income or any income tax fraud involved with your income tax return filing.

State statute of limitations can vary widely, so you should consult with your income tax advisor to determine what your state statute of limitation is.  The statute of limitations for the State of California is four (4) years from the date your income tax return is filed.