First of All. . .1031 Exchanges (or 1031 Like Kind Exchanges): What Are They? Most of you probably already know  but just in case...here's a quick review. . .A 1031  Like Kind Exchangeis a transaction that "involves property held for productive use in a trade or business or for investment (except inventory and stocks and bonds) for property of the same type."

Now you know that I and my ECO-friendly team at our Firm are into looking for eco-wise investments in GREEN real estate, the Asheville area. Not to boast, but it is true. . .The Greater Asheville Area happens to be the hottest market for second/vacation homes in the USA,!

 We love to help our clients find equestrian properties and other acreage for eco development, like that you see in this photo our team photographer took.

 And, with just a little planning, the 1031 Exchange (or 1031 Like Kind Exchange) can speed you on your way to investment success.

For Example : You could invest in an eco-development out by pastoral Mars Hill, North Carolina and that could be Like Kind with an apartment complex or duplex wherever you live right now. Farmland for residential property that is rented, but that is and not lived in by the investor, is also Like Kind. Keep in mind that the regulations concerning section 1031 give specific examples of what is or is not Like Kind, so I always recommend that you seek the counsel of your attorney and CPA while you and I are out locating replacement properties.

I've been lucky to understand from first-hand experience number of 1031 Like Kind Exchange scenarios.
Here are two of my favorites.

Scenario One:

A happy client decides to trade 60 acres in North Florida for a purchase of 60 acres of fantastic beauty we currently have listed here in Asheville. You know, it is quite unusual for a seller and the buyer to have exactly the same properties. In any case, rather than simply selling your investment property and yourself organizing the purchase of the replacement property, you can select an qualified intermediary. (If you were to control the funds from the sale and the constructive receipt, you would also trigger capital gain tax. That tax could be 20% of the gain recognized by the sale due to appreciation of the property on my original cost basis. Higher tax rates could be triggered by depreciation.)

 So, in order to avoid this capital gain tax when you replace your Florida equestrian property with a sweet horse farm in Mars Hill, North Carolina, you can utilize a qualified intermediary who will help facilitate the exchange and avoid the constructive receipt of the proceeds from the Florida farm.

Scenario Two:

My ECO team and I are out hunting for an eco-development Replacement Property. The hills and mountains and coves here in the Asheville area are full of special treasures. It is a real thrill to find them. Once we do find your replacement property, our client will have to deliver to her qualified intermediary a clear description of that property. It's fun to can help with that. We can make sure that there can be no way that the property can be confused with another property. And we can even identify up to three (3) properties of any value, or more than three (3) properties, so long as the total fair market value does not exceed 200% of the fair market value of what you are relinquishing.

FOR DETAILS ON 1031s check out AR's own

Matt Linville, Certified Exchange Specialist (1031qi) Greenville, SC -  His speciality lies in 1031 Like Kind Exchanges. I am a Qualified Intermediary and CES having handled well over $1 billion of exchange funds, but never failing to see the client and meeting their needs

####