How Does a 1031 Exchange Affect State Income Taxes?
Thursday, February 16
As a qualified intermediary and licensed real estate professional, I’ve personally seen the surge in taxpayers leveraging the power of a #1031 exchange. It is a great way to defer capital gains taxes and more quickly build a portfolio of business or investment properties.Yet one area where more t...
Can You Reclaim Your Initial Down Payment in a 1031 Exchange?
Friday, February 10
If you are an investor preparing to sell one property and acquire another, one question you might be wondering about has to do with your original down payment on the property you plan to sell (the “relinquished property” in #1031 lingo). More specifically, you may be asking if it is possible to w...
Separating Fact from Fiction in 1031 Exchanges
Thursday, February 09
With a new administration in the White House and ongoing rumors that Section #1031 is in the legislative crosshairs, now might be the best time ever to begin your own 1031 exchange.But before you dive in, be clear about what is true (and what is not) about this beneficial tax-deferral tool.A taxp...
How to Calculate Deadlines in a 1031 Exchange
Wednesday, February 08
Anyone who wants to complete a #1031 exchange and defer capital gains taxes on the sale and replacement of investment or business property must understand IRS timing rules. Internal Revenue Code requires that you identify your replacement property (or properties) within 45 days of closing on the ...
What is the Two-Year Holding Rule in 1031 Exchanges?
Tuesday, February 07
In most #1031 exchanges, the parties to the process only come together because one is selling something the other one wants. They don’t likely know each other, and, in many cases, may never meet at all. For those transactions, special rules of IRS code may never come into play.However, when relat...
Sell or Exchange Your Investment Real Estate? It Depends.
Monday, February 06
If done correctly, a #1031 exchange allows an investor to defer paying all of the capital gains taxes, which equates to a long-term and interest-free loan from the IRS. Nice, right? In addition, the investor then has all their gross net equity available to reinvest so they can acquire bigger and ...