held for investment: 1031 Exchange - Like Kind Property - REWIND
- 05/06/08 07:12 AM
A Quick Review of the Most Commonly Misunderstood Aspect of 1031 Exchanges Yesterday, we examined some more advanced aspects of 1031 exchanges that addressed like kind property issues. I thought it would be helpful to do a quick review on one of the most confusing areas of 1031s. One of the most commonly misunderstood aspects of 1031 exchanges is the concept of Like Kind Property. People commonly think that if they sell a duplex only a duplex will be like kind in their exchange. That couldn't be farther from the truth. The definition under the tax code of like kind property is "property held for (3 comments)
held for investment: 1031 Exchanges - Held for Resale v. Held for Investment
- 04/30/08 10:53 AM
Many investors want to know "How long do I need to hold onto property for it to qualify for 1031 treatment?" This is an area that the Treasury Regulations do not directly address. Instead, the focus is on the intent of the investor at the time of sale of the relinquished property and at the time of purchase of the replacement property. What Section 1031 Actually Says "No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like kind, which is to be held for productive use (0 comments)
held for investment: 1031 Exchanges and The Serial Flipper
- 04/30/08 08:07 AM
To Flip or Not To Flip This post was inspired by a comment I made on JL's Blog post about flipping property as an investment strategy. As he pointed out many first time real estate investors are entering the market inspired by shows like "Flip This House." What a lot of these shows don't show is that flipping can be RISKY. . .
AND flipping can often be a gamble, akin to flipping a coin. . . As with any investment, often the greater the risk, the greater the potential pay off. . . Here are a couple of things to keep in mind if you think (6 comments)
held for investment: 1031 Exchanges - Holding Period Issues
- 04/08/08 12:30 PM
DEFINITION OF LIKE KIND PROPERTY "HOLDING PERIOD" ISSUES IRC section 1031 states that property "held for productive use in a trade or business or for investment" must be exchanged for like-kind property. A frequently asked question is, "Exactly how lod does a property need to be held to be considered an investment property by the IRS?" There is a lot of confusion and misinformation among real estate agents and investors on the issue of what is viewed as "held for investment." A MORE COMPLETE PERSPECTIVE There is no safe holding period for property to automatically qualify as being "held for investment" (with the exception of (0 comments)
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.