A section 1031 tax-deferred exchange is a way that real estate owners can sell investment real estate and buy a replacement piece, or pieces, of investment real estate while deferring both the capital gains tax as well as any depreciation recapture tax. Many private investors use this as a ...
In order to qualify for a 1031 exchange you must be exchanging "Real Property". So what does "Real Property" means in relation to a 1031 exchange? Watch this short video to better understand the definition of Real Property and some examples. In order to qualify for a 1031 exchange you mu...
A 1031 exchange, also known as a “1031 tax deferred exchange,” is a powerful tool under theU.S. tax code. In short, it allows real estate investors to swap one investment property for another. The main benefit is that it permits the investor to defer paying capital gains taxes on the...
1031 Exchange Rules and Time Frames To qualify for a 1031 exchange, both you and your real estate deal must meet certain criteria. In addition to both the old and new properties being like-kind, adhere to these 1031 exchange rules.
Real estate dealers also lose the ability to depreciate property held for future sale and to defer taxes using a 1031 exchange. Finally, a real estate dealer’s status affects the ability to offer installment sales. If a real estate dealer finances the sale of a property, taxes are due on...
What is a REIT (Real Estate Investment Trust), and why should you consider investing in this hassle-free commercial real estate option today.
However, it is implied the complexity of 1031 exchange rules can trip up even the savviest real estate investor. It is inferred that a 1031 exchange may not be in the best interest of an investor if the investor has suspended losses from the rental property that they wish to exchange and ...
When investor-clients and other real estate professionals ask who I recommend to facilitate a 1031 exchange, I will enthusiastically say – Asset Preservation. Thank you for a wonderful experience! Deborah P., New York We are so thrilled with your assistance with the reverse 1031 exchange. You...
In essence, a 1031 exchange (also called alike-kind exchangeor Starker exchange) allows real estate investors to trade oninvestment propertyfor another of similar type, avoiding the recognition ofcapital gainsat the time of the swap. Most swaps are taxable as sales, although if yours meets the ...
A reverse exchange in real estate is a type of property exchange wherein the replacement property is acquired first and then the current property is sold. A reverse exchange was created to help buyers purchase a new property before being forced to trade in or sell a current property. This ma...