Need help with basic 1031 exchange

[Yatin G.]

Would like to 1031 from LTR into a bigger STR. Is there someone that has done this , knows some intermediary that can help, cost , fees etc. Would love to discuss strategies with a like minded investor/ individual. Let me know .

[Dave Foster]

@Yatin G., You find this type of 1031 exchange to be pretty straight forward. A 1031 exchange can be made from any type of investment property into any other type of investment property. So your move from LTR to STR is perfectly fine. And you can move anywhere in the country.

As long as you follow the timelines, use a qualified intermediary, and purchase at least as much as your net sale you'll indefinitely defer all tax and depreciation recapture.

[Dave Foster]

@Yatin G., You find this type of 1031 exchange to be pretty straight forward. A 1031 exchange can be made from any type of investment property into any other type of investment property. So your move from LTR to STR is perfectly fine. And you can move anywhere in the country.

As long as you follow the timelines, use a qualified intermediary, and purchase at least as much as your net sale you'll indefinitely defer all tax and depreciation recapture.

[Eliott Elias]

There are many 1031 exchange companies, call around. 

[John Morgan]

@Yatin Gurjar

I did this with a STR to a LTR. The title company I used when I sold my property had an intermediary. Most do. Ask your title company if they have one or recommend one for you. It cost me $1000 total for both transactions for my intermediary.

[Account Closed]

1031 exchanges are limiting and stressful. If you take ownership in a trust, you have zero liability, a zero capital gains tax, pay zero tax on passive income and k1 distributions and never have to use a 1031 exchange. All the investors I work with love this system because they don't have to rush against the clock (and possibly rush into a bad property) and can wait for the right property to come around.

[Basit Siddiqi]

The first step is to talk to a CPA to see if a 1031 exchange makes sense to you based on the facts and circumstances.

Some instances where a 1031 might not make sense are if the gain on the property is small in which case it makes sense to bite the bullet and pay the tax.
The other instance is if you already have enough passive losses to offset the gain.

Other than those reasons, a 1031 exchange is a great tool to use.

I would consider using @Dave Foster

[Dave Foster]

Hi @Yatin G., I'm a neighbor and a QI here in St. Pete.  Basit is exactly correct.  Your accountant addresses your need to do the 1031 exchange.  The QI performs the process and walks you through the regulations and process.  I'll reach out via  pm and we can talk further.