Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 11 JULY 2022

Real Estate Partnerships And Section 1031 Exchanges

Allen Matkins Leck Gamble Mallory & Natsis LLP
Explore more from Allen Matkins Leck Gamble Mallory & Natsis LLP

Jared Kassan, a partner at law firm Allen Matkins, participated on a panel earlier this year to discuss legal issues surrounding partnerships and 1031 exchanges.

United StatesReal Estate and Construction
Jared C. Kassan
Jared C. Kassan

Jared Kassan, a partner at law firm Allen Matkins, participated on a panel earlier this year to discuss legal issues surrounding partnerships and 1031 exchanges. The other panelists included Todd Keator from Holland & Knight, and Lou Weller from Weller Partners. The panel began by discussing the traditional "drop and swap" strategy with its associated issues and then went on to discuss alternatives.

The panel focused on a fictional LLC with three owners, one of whom wants to leave the partnership. In the scenario, the LLC owns real property with a fair market value of $900, a basis of $300, and $0 debt. Panelists started the conversation by explaining how the classic drop and swap might work.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Governor Newsom Signs Key Housing Bills Into Law

California Governor Gavin Newsom has signed multiple state housing bills into law that will take effect January 1, 2027, introducing significant changes to housing development regulations across the state. These new laws establish streamlined ministerial approval processes for various housing types, from high-density transit hub projects in major cities to townhomes and factory-built housing, while also reforming ADU regulations, permit processing requirements, and density bonus provisions. Will these legis
United StatesReal Estate and Construction
Allen Matkins Leck Gamble Mallory & Natsis LLP
Allen Matkins Leck Gamble Mallory & Natsis LLP
Article

More For The Missing-Middle: SB 1116 Expands Starter Home Revitalization Act (SB 684/1123)

California's Starter Home Revitalization Act receives significant enhancements through Senate Bill 1116, expanding site eligibility criteria, limiting local zoning restrictions, and invalidating certain private deed covenants to accelerate small-lot residential subdivisions. The legislation introduces streamlined 60-day ministerial approvals while establishing new rules for lot size averaging, height restrictions, and concurrent permit processing that fundamentally reshape the pathway for starter home devel
United StatesReal Estate and Construction
Allen Matkins Leck Gamble Mallory & Natsis LLP
Allen Matkins Leck Gamble Mallory & Natsis LLP
Article

Residential Vacancy Tax Preempted By State Law

A California Court of Appeal has invalidated San Francisco's Empty Homes Tax, ruling that the Ellis Act—which protects property owners' right to exit the rental market—also shields them from being forced to enter it through vacancy taxation. This landmark decision raises critical questions about the viability of similar residential vacancy taxes that other California municipalities have enacted or are considering as housing policy tools.
United StatesReal Estate and Construction
Cox, Castle & Nicholson
Cox, Castle & Nicholson
Article

New York City Rent Freeze Faces Legal Challenge As Court Considers Landlords’ Claims

Landlords of rent stabilized buildings in New York City have filed a lawsuit challenging the rent freeze passed by the Rent Guidelines Board, questioning the Board's independence and data integrity. With operating costs rising 31% over five years while the Board voted 7-1 for a freeze affecting 1 million apartments, the case raises critical questions about the balance between tenant protection and landlord viability.
United StatesReal Estate and Construction
Hogan Lovells Cadwalader
Hogan Lovells Cadwalader
Article

California Contractors Get A Much-Needed Break: SB 342 Softens The Harsh Consequences Of Contractor License Lapses

Imagine completing a multimillion-dollar project, performing quality work, paying your subcontractors, and satisfying the owner, only to discover that a temporary contractor license lapse could prevent you from recovering payment for that work or pursuing claims for extra work. For decades, that was the reality under California Business and Professions Code section 7031.
United StatesReal Estate and Construction
Seyfarth Shaw LLP
Seyfarth Shaw LLP
Article

New Florida Law Adds Licensing Risk To Contractor/Subcontractor Payment Disputes

Florida's new Section 489.1295 establishes licensing consequences for contractors who fail to timely pay subcontractors and suppliers, effective July 1, 2026. The statute creates disciplinary exposure for knowingly or willfully withholding payment, though it includes important exceptions for bona fide disputes and contractual payment terms. Contractors must now navigate potential license sanctions including fines up to $10,000, suspension, or revocation when payment disputes arise.
United StatesReal Estate and Construction
Peckar & Abramson, P.C.
Peckar & Abramson, P.C.
Article

Colorado’s New Mechanic’s Lien Law: Bigger Claims, Stronger Protections, And New Risks For Owners And Contractors

On April 6, 2026, the same day that the Colorado Supreme Court issued its decision in Ralph L. Wadsworth Construction Company, LLC v. Regional Rail Partners, Governor Jared Polis signed Senate Bill 26-074 into law. The legislation, which took effect on August 12, 2026, clarifies the amounts that may be included in mechanic’s liens and public construction payment claims, as well as the circumstances under which those claims may be considered excessive.
United StatesReal Estate and Construction
Higgins, Hopkins, McLain & Roswell, LLC
Higgins, Hopkins, McLain & Roswell, LLC
Article

Governor Newsom Signs Key Housing Bills Into Law

California Governor Gavin Newsom has signed multiple state housing bills into law that will take effect January 1, 2027, introducing significant changes to housing development regulations across the state. These new laws establish streamlined ministerial approval processes for various housing types, from high-density transit hub projects in major cities to townhomes and factory-built housing, while also reforming ADU regulations, permit processing requirements, and density bonus provisions. Will these legis
United StatesReal Estate and Construction
Allen Matkins Leck Gamble Mallory & Natsis LLP
Allen Matkins Leck Gamble Mallory & Natsis LLP
Article

More For The Missing-Middle: SB 1116 Expands Starter Home Revitalization Act (SB 684/1123)

California's Starter Home Revitalization Act receives significant enhancements through Senate Bill 1116, expanding site eligibility criteria, limiting local zoning restrictions, and invalidating certain private deed covenants to accelerate small-lot residential subdivisions. The legislation introduces streamlined 60-day ministerial approvals while establishing new rules for lot size averaging, height restrictions, and concurrent permit processing that fundamentally reshape the pathway for starter home devel
United StatesReal Estate and Construction
Allen Matkins Leck Gamble Mallory & Natsis LLP
Allen Matkins Leck Gamble Mallory & Natsis LLP
Article

California Links Data Center Permitting And Licensing To New Water Use Disclosure And Drought Planning Obligations

California has enacted comprehensive legislation requiring data center developers to disclose water usage and demonstrate supply adequacy before obtaining permits. These new laws impose water supply assessments, efficiency reporting, and drought contingency planning obligations that fundamentally reshape the regulatory landscape for data center development in the state.
United StatesEnvironment
Allen Matkins Leck Gamble Mallory & Natsis LLP
Allen Matkins Leck Gamble Mallory & Natsis LLP
Article

Understanding And Addressing Mechanic’s Liens On California Projects

Mechanic's liens pose significant challenges for property owners and developers in California construction projects, even when they have fulfilled their payment obligations. Understanding the strict procedural requirements, timing deadlines, and available remedies can help owners protect their projects from improper claims and efficiently resolve legitimate liens when they arise.
United StatesReal Estate and Construction
Allen Matkins Leck Gamble Mallory & Natsis LLP
Allen Matkins Leck Gamble Mallory & Natsis LLP
Article

Building An Affordable California Act: CEQA Reform For “Essential Projects”

California voters will soon decide on Proposition 45, the Building an Affordable California Act (BACA), which promises to revolutionize CEQA environmental review for essential projects including housing, infrastructure, and renewable energy developments. The initiative would establish vested CEQA standards, accelerated review timelines, and significantly reduced litigation risks for qualifying projects. Will this landmark reform provide the certainty developers need, or will ambiguities in its broad provisi
United StatesEnvironment
Allen Matkins Leck Gamble Mallory & Natsis LLP
Allen Matkins Leck Gamble Mallory & Natsis LLP
Article

Accelerated Permitting For Energy Projects Is Gaining Steam: Examining BLM's Approval Of New-Build Geothermal Plants On Federal Land In Nevada

The Bureau of Land Management has authorized the Pearl Geothermal Development Project using a controversial 14-day expedited environmental review process, marking the first new geothermal power plant approved under emergency permitting procedures implemented in response to President Trump's national energy emergency declaration. While the project underwent multiple phases of review over several years before final approval, questions remain about whether future projects conceived after these Alternative Arra
United StatesEnvironment
Allen Matkins Leck Gamble Mallory & Natsis LLP
Allen Matkins Leck Gamble Mallory & Natsis LLP
Article

New State Water Board Measurement And Reporting Rules: What Water Rights Holders Need To Know By October 2026

California's State Water Resources Control Board has implemented sweeping changes to water diversion measurement and reporting regulations, requiring rights holders to upgrade equipment, formalize methodologies, and submit standardized data through the new CalWATRS platform. With critical deadlines approaching in October 2026 and January 2027, water users face substantial compliance obligations backed by penalties of up to $10,000 per day for violations. What specific steps must diverters take now to ensure
United StatesEnvironment
Allen Matkins Leck Gamble Mallory & Natsis LLP
Allen Matkins Leck Gamble Mallory & Natsis LLP
Article

San Francisco Unveils Reforms To Unlock Housing Pipeline

San Francisco's Board of Supervisors has approved sweeping housing reforms that dramatically reduce inclusionary affordable housing requirements and development impact fees. The legislation eliminates BMR obligations for projects under 25 units, slashes on-site requirements to 5% citywide, and cuts development impact fees by 67%, while a companion ballot measure seeks to expand the Affordable Housing Trust Fund to $125 million annually by 2036.
United StatesReal Estate and Construction
Allen Matkins Leck Gamble Mallory & Natsis LLP
Allen Matkins Leck Gamble Mallory & Natsis LLP
Article

CDFW Issues Comprehensive Additional Guidance For Candidate Bumble Bee Species

California's Department of Fish and Wildlife has issued comprehensive new guidance that dramatically expands protection requirements for four candidate bumble bee species under the California Endangered Species Act. The 2026 guidance introduces strict survey timelines, seasonal construction restrictions, and mandatory onsite biological monitoring that will significantly impact project planning and budgets across the state. Project developers now face narrow construction windows, 60-day advance survey submis
United StatesEnvironment
Allen Matkins Leck Gamble Mallory & Natsis LLP
Allen Matkins Leck Gamble Mallory & Natsis LLP