IN A BUYER'S MARKET LIKE WE ARE HAVING IN MANY AREAS OF CALIFORNIA MANY REAL ESTATE INVESTORS MAY BE TAKING A LOOK AT NEW POSSIBILITIES AND MAKING CHANGES IN THEIR PROJECTIONS. WHATEVER THEY MAY BE, A TAX DEFERRED EXCHANGE IS A CONSIDERATION WHICH YOU MUST CONSULT WITH YOUR TAX ADVISOR, AND A TAX DEFERRED 1031 EXCHANGE SPECIALIST (THE INTERMEDIARY).
IT IS IMPORTANT TO START LOOKING INTO IT AS SOON AS POSSIBLE AS THERE ARE TIME LIMITS THAT YOU NEED TO BE AWARE OF. THE PROPERTY TO BE EXCHANGED MUST BE OF LIKE KIND IN NATURE OR CHARACTER. MOST REAL PROPERTY CAN BE EXCHANGED FOR OTHER REAL PROPERTY, SUCH AS AN OFFICE BUILDING FOR VACANT LAND, BUT PROPERTY HELD FOR PERSONAL USE CANNOT BE EXCHANGED FOR INVESTMENT PROPERTY. BASICALLY, THE PROPERTY IS SOLD WITH THE PROCEEDS HELD BY A THIRD PARTY UNTIL A NEW PROPERTY IS IDENTIFIED (WITHIN 45 DAYS) AND PURCHASED (WITHIN 180 DAYS). THE PROPERTY RECEIVED WILL HAVE THE SAME COST BASIS AS THE PROPERTY TRANSFERRED, PROVIDED THAT NO MONEY OR OTHER CONSIDERATION IS RECEIVED IN THE TRANSFER. ANY SUCH CONSIDERATION WOULD BE CONSIDERED 'BOOT', AND IS TAXABLE. IF THERE ARE MORTGAGES ON ANY OR BOTH OF THE PROPERTIES THEN THE DIFFERENCE IS CONSIDERED INCOME OR MORTGAGE RELIEF ON THE PROPERTY TRANSFERRED.
EVERY SITUATION IS DIFFERENT AND REQUIRES CAREFUL CONSIDERATION. IF YOU ARE CONSIDERING SUCH A MOVE, CONTACT NANCY RILEY AT (415) 260-9539, OR BY EMAIL TO newday_3@ix.netcom.com, or nancy@bradleyrealestate.com. ALSO PLEASE CHECK OUT MY WEB SITE: WWW. NANCYRILEYREALESTATE.COM
I WILL HELP PROVIDE THE TEAM YOU NEED TO DO SUCH A TRANSACTION.
NANCY RILEY
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