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des moines 1031: Update on the Farm Bill and Its Impact on Section 1031 - 12/19/07 04:59 PM
A little over a month ago, I wrote a blog about Section 12504 of the Farm Bill that was under consideration by the Senate at the time. (You can read it here.) The focus of the blog was the general impact on Section 1031 that a particular subsection of the bill might have. The gist of the whole thing was that the proposal sought to redefine the concept of "like-kind" property, which until now has had a very broad definition when it comes to real estate. (You can exchange raw land for an apartment building, three rental houses for an industrial … (30 comments)
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des moines 1031: “Held for Investment”—What's That? - 11/08/07 04:31 PM
“HELD FOR INVESTMENT”—WHAT'S THAT?
The actual wording of Internal Revenue Code §1031 says that in order to qualify for tax-deferred treatment, the property owner must sell property that has been “held for productive use in a trade or business or for investment” (emphasis added) and purchase property of like-kind. Often, potential exchangers want to know how long they have to own property to establish that it has been “held for investment.” Unfortunately (or perhaps fortunately), neither the IRS nor the Regulations gives us a complete answer on that subject. If some specific time frame were established, it would certainly be an … (0 comments)
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des moines 1031: What Real Estate Agents Need to Know About §1031 Tax-Deferred Exchanges - 10/26/07 04:37 PM
It's clear that Section 1031 tax-deferred exchanges provide real estate agents a tremendous opportunity to increase commissions. But more importantly, you are serving your client's best interest when you are able to recognize an opportunity for a tax-deferred exchange. Think about it. What's better for your client? Paying taxes, or being able to put more money into a property by deferring those taxes? At Iowa Equity Exchange, we say, "Help your clients grow their investments, not their tax bills!" We also say, "Help yourself by helping your clients."
Here are a few questions that are commonly asked by real estate agents:
… (2 comments)
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des moines 1031: Section 1031 Tax-Deferred Exchanges—An Overview - 10/24/07 04:18 PM
WHAT IS SECTION 1031?
Section 1031 of the Internal Revenue Code (IRC) allows an owner of investment property to defer the payment of federal and state capital gain taxes by purchasing “like-kind” property following the rules and regulations of the IRC. Capital gain taxes are typically 15% of the gain, plus 25% recapture of depreciation taken, plus applicable state taxes, which in Iowa are presently 8.98%. (Adding just the federal capital gain tax to the Iowa capital gain tax results in taxes of 24% of the investor's gain. Depreciation recapture can add another significant amount onto the 24%, often pushing the … (2 comments)
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Ken Tharp - Section 1031 Exchanges, Iowa/U.S.
West Des Moines,
IA
More about me…
Iowa Equity Exchange
Address: Des Moines, Iowa, Nebraska, Kansas, Oklahoma, Missouri, South Dakota, North Dakota, Minnesota, Wisconsin, Illinois, Indiana
Office Phone: (800) 805-1031
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