1031 Exchange Data Since 1995

 

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The Source reader Christopher Suhy had an interesting comment the other day about IRS 1031 “like kind” property exchanges.  He asked if there had been any studies made showing and comparing regions and market segments where 1031 exchanges had taken place.  As he points out, it would be useful to find market segments where 1031s are underutilized.

 

While I didn’t know of any such study, I knew that if there’s one thing the IRS does well, it’s produce paper.  Lots and lots and lots of paper.  Somewhere in that mountain of documents, I felt sure, was at least some statistical treatment of 1031 exchanges.  All I had to do was find the right office and ask for it.  What I obtain might not be exactly what Mr. Suhy was after, but if nothing else, it’d be a chance to watch the IRS do something from a different perspective than the one from which so many of us usually encounter it: beneath our desks, curled in the crash position.

 

So I found the Statistical Information Services (SIS) office within the IRS’s Statistics of Income Division.  I’d love to tell a dramatic story where I had to hurdle obstacles and brave multiple layers of bureaucracy, but no such luck. I simply shot over an email asking about studies for 1031.  I was amazed to get a response right away from a friendly economist there letting me know that, yes, they do have data on in-like-kind exchanges as under IRC 1031 (hey, neat!), alas, they do not have any studies organized geographically (darn).

 

And so here’s what we do have, shared here for the readership: an IRS spreadsheet of estimates of data based on samples of submitted IRS Form 8824 for tax years 1995-2010. In it you can see the broad strokes of popularity of 1031s, deal volumes, splits between individuals, partnerships and corporations, recapture, gains, etc.  I’m no tax expert (and you should never, ever take anything you read here at The Source as tax or legal advice) but it does appear that form 8824 is a key filing for such exchanges.  Any real estate tax professionals who care to chime in to confirm or deny, please leave a comment.

 

It’s not quite what you were looking for, Christopher, but at least it’s something on the topic at a national level straight from Washington, DC’s document mountain.

 

Download the IRS spreadsheet “Form 8824 Data For Tax Years 1995-2010″ here.

 

 

 

 

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14. December 2012 by Wayne Grohl
Categories: Research, Tax | 8 comments

Comments (8)

  1. Thanks for making this available, it is interesting to see the breakdowns and splits.

  2. Very helpful. Any chance you have access more recent numbers now that 2012 is complete?

    Any possible way to get a state by state breakdown?

    Thank you for posting this.

  3. Hi Wayne,
    Following up on this to see if you were able to dig anything up that breaks down the 1031 #’s by state?

    ~Cordell

  4. Wayne,

    Did you ever get any access to 2011 numbers?

    • Paul:

      Not yet – thanks for reminding me. I will shoot a note over to Uncle and see what I can shake loose. Maybe by now they also have 1031 studies by region. Let’s hope.

      WG

  5. Paul, Pat and Cordell:

    Wanted to let you know there’s a new post about IRS 1031 exchange data and a new IRS page where the reports can be found in the future.

    http://blog.commercialsource.com/how-to-get-1031-exchange-data-from-the-irs/

    Cheers!

    WG

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