Whether you're a first-time investor or a seasoned property owner, a 1031 exchange can impact your tax strategy significantly. Here's how.
In a 1031 exchange, the property sold is referred to as the “relinquished property” and the property acquired is called the “replacement property”. Prior to the introduction of the 1031 exchange, a homeowner had to simultaneously sell one property while purchasing the new property, a practice...
Completing a 1031 exchange requires careful planning and attention to detail. Since the process can be complicated, it’s wise to consult a tax professional. But for a general understanding of how a 1031 exchange works, here’s a brief description of the steps involved in a typical like-kind...
It’s important to understand that not all properties are eligible for a 1031 exchange. Personal residences, stocks, bonds, and partnership interests do not qualify. However, most other types of real estate, such as commercial properties, rental properties, vacant land, and even leasehold interests...
I am a big fan of 1031 exchanges. I wouldn't have the net worth I have today had I paid the capital gains taxes on my every property sale. That said, I recommend that you buy a copy of Jack Reed's "How to Do a Delayed Exchange" (http://johntreed.com/REIbook...
Hey all, I've got a screenshot below to illustrate what I'm working with. But here's the situation. On the left-hand window (step three), I have a series with a 1-5 ranking system in the next column over. My goal is to have the sheet on the right-hand side...
House-flipping has become more of a popular avenue to investing in real estate, but it requires a keen eye for value and more operational expertise than becoming a long-term landlord. However, this path may help you realize a quicker profit than being a landlord if you do it right. ...
This handy guide offers detailed, step-by-step advice on using the 1031 Exchange--and much more:* How the capital gains tax works* Other little-known real estate loopholes* Creative real estate financing techniques* Advanced elements of tax-free exchanges* Terms and concepts you need to know*...
Reverse exchanges apply only to 1031 properties and are only permitted in cases where investors have the financial means to make the new purchase. How a Reverse Exchange Works Standardlike-kind exchangerules usually do not apply to reverse exchanges. Such rules typically allow a property investor ...
2. Taking Advantage of 1031 Exchanges The 1031 exchange, named forSection 1031of the Internal Revenue Code, allows investors to defer taxes by selling one investment property and using the equity to purchase another property or properties of equal or greater value. This exchange must occur within...