| |
capital gain tax: 1031 EXCHANGES MAY BENEFIT INVESTORS FACING FORECLOSURE - 06/26/08 06:32 PM
I know it sounds weird but it could help an investor in a very specific set of circumstances.
In the last post we examined the options available for taxpayers who had debt forgiven or canceled on their principal residence. But what about those who own investment property who are facing a short sale or foreclosure? Are there tax consequences when debt is forgiven or canceled on those types of properties? You bet!
Given the challenging conditions in the real estate market, some taxpayers may be faced with the prospect of foreclosure or a short sale arrangement with their lender. Taxpayers … (8 comments)
|
capital gain tax: 1031 Exchanges -- An Exchange May Still Be Necessary, Even in a Declining Market - 06/11/08 04:35 PM
There May Still Be Capital Gain Even If they Are Selling for Less than What They Paid to Purchase It!!!
You ask, "How can that possibly be?"
Well, remember that when a taxpayer engages in a 1031 Tax Deferred Exchange (selling investment property and exchanging into a new investment property) they are DEFERRING the capital gain tax that would normally be recognized on the sale.
What does Deferral mean?
It means that the basis of the Replacement Property is reduced by the amount of Capital Gain that was deferred on the sale of the Relinquished Property resulting in a … (4 comments)
|
capital gain tax: 1031 Exchange - CALCULATING CAPITAL GAIN TAX~Putting It All together - 04/17/08 05:46 PM
SALE v. EXCHANGE
In the example below we bring the previous two posts together to demonstrate the power of a 1031 exchange and how it permits the taxpayer to defer the payment of capital gain tax, so that he/she can use the amount they would have paid the IRS as additional equity in their new replacement property. It permits the taxpayer to purchaser more property than if he/she were to have done a straight sale, paid the capital gain tax and bought another investment property.
*Note: 25% x $150,000 = $37,500 15% x $570,000 = $85,500 9.3% x 720,000 = $66,960
If you found this … (0 comments)
|
capital gain tax: 1031 Exchanges - Ever Wondered How to Discuss Exchanges With Clients? - 04/17/08 01:38 AM
WHAT IS A §1031 EXCHANGE?
Here's a concise way and simple way to describe a 1031 Exchange. . .
… (0 comments)
|
capital gain tax: 1031 Exchanges - Stages Of A Delayed Exchange - 04/17/08 12:53 AM
"FOLLOW THESE SIMPLE STEPS FOR A SUCCESSFUL TRANSACTION"
… (0 comments)
|
capital gain tax: 1031 Exchanges -- How Do Prorations Affect Deferral? - 04/10/08 09:40 PM
CAUTION IS NEEDED WITH SECURITY DEPOSITS, REPAIR COSTS & PREPAID RENT
Security deposits, repair costs and prepaid rent that are allocated among buyer and seller in a purchase and sale contract through a standard prorations clause, can be a source of taxable boot if not handled carefully. The prorations clause works by adjusting the amount of cash that must be paid by the buyer at closing.
For example, a typical rent proration clause would credit the buyer with rents already received by the seller that are allocable to the period following the closing thereby reducing the amount of cash the buyer must … (0 comments)
|
capital gain tax: 1031 Exchanges - Exchanger Checklist - 04/01/08 08:32 PM
As a result of my previous post, requesting feedback on the type of information that will be useful to the ActiveRain community, I am posting our Exchanger Checklist that gives both agents and investors a concise step-by-step timeline of items to be covered prior to the exchange and during the exchange period. Please feel free to comment and/or email me if you have additional questions or you need clarification.
Lisa A. Lambert, Esq (1031 Exchange Expert) Asset Preservation, Inc. 877.646.1031 LisaL@apiexchange.com
Remember, that qualified intermediaries are not create equal. Currently, there is very little regulation (a few states have passed some regulation) but it means … (5 comments)
|
|
|
|
|
|
Lisa Lambert, Esq. (1031 Exchange Expert)
Fresno,
CA
More about me…
The Law Offices of Elisabeth A. Lambert
Address: 1222 W. Shaw Avenue, Fresno, CA, 93711
Cell Phone: (559) 433-5399
Email Me
Discussing 1031 Exchange Issues and Related Real Estate Issues in California. Specifically focusing on the Merced, Madera, Fresno, Selma, Reedley, Oakhurst,Visalia, Hanford, Porterville and Bakersfield areas.
 Links
Archives
|
;)
;)
