Special offer

SHOULD I CONSIDER A 1031 TAX DEFERRED EXCHANGE ON MY INVESTMENT PROPERTY?

By
Real Estate Agent with Bradley Real Estate

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

 

Keith Elliott Jr
KEIRE Realty Group - Manassas, VA
Principal Broker/Owner

Hello Nancy,

Welcome to Active Rain and congrats on your first post! The opportunities to learn and network are incredible here. Best of luck to you!

-Keith

Jan 30, 2009 03:02 PM
Nancy Riley
Bradley Real Estate - Tiburon, CA

Thanks, Keith.  I am looking forward to the experience!

Nancy

Jan 30, 2009 03:45 PM
Everard Korthals
---Preferred Lifestyle Advisors--- - Lancaster, PA
Mountain Realty

Welcome!  If ever you were to have any questions then feel free to contact us and we'll try to help. Please take a look at our blog. for links to valuable information in our sidebar that you can use to navigate this extensive network.  

We hope you have a great day, All The Best- 

Sincerely, ( Active Castellum ( Castellum Realty llc - Lancaster PA Real Estate )

Jan 30, 2009 10:42 PM
Marcia Vinyard
Mariner Realty - Willis, TX

Welcome to active rain.  Lake Conroe, Montgomery County, Willis area specialists in Texas.  Marcia at Mariner Realty

Jan 31, 2009 07:26 AM
Jean Terry
Keller Williams Realty Spartanburg, S.C. - Spartanburg, SC

Hi and welcome to Active Rain. A great site to network, share, learn and have fun. Good Luck!

Jan 31, 2009 08:21 AM