knowledge information preparing buy sell selling home marketing your home part 1031 exchange: 1031 Exchange part 3
- 12/28/08 03:33 PM
Why would I want to be involved in an Exchange?Do you own "management intensive" Real Estate? Or perhaps you own property you purchased or inherited years ago and would prefer another property. You have probably realized good returns on investment that will otherwise be lost to the IRS. The sale of every property is a potential tax event with the tax consequence being realized after the closing of the property. Section 1031 was written into the Internal Revenue Code in the 1920's. The IRS realizes that your investment in Real Estate spurs the economy onward, however upon the sale of the … (2 comments)
knowledge information preparing buy sell selling home marketing your home part 1031 exchange: 1031 Exchange part 2
- 12/28/08 03:31 PM
How does an Exchange workAn Exchange is usually a 3 way Exchange in which an intermediary is used to facilitate the transaction. Four things ordinarily occur in an exchange: The seller sells the relinquished property. At closing the sale proceeds go to a Qualified Intermediary where the funds are held in a trust account "For Benefit Of" the exchanger. The seller identifies replacement properties within 45 days of the closing of the relinquished property. The seller (now the buyer) closes on the replacement property(ies) within 180 days of closing on the relinquished roperty and the funds are wired from the "FBO … (1 comments)
knowledge information preparing buy sell selling home marketing your home part 1031 exchange: 1031 Exchange part 1
- 12/28/08 03:26 PM
What is a "1031 Exchange" aka "Like Kind Property Exchange"?Sometimes referred to as a "Starker Trust", a 1031 Exchange is a transaction in which an owner of property held for investment is allowed to sell one or more properties and purchase one or more properties without a tax consequence. It is the best strategy for the deferral of capital gains tax that would ordinarily arise from the sale of Real Estate. Real Estate owners can accomplish almost any investment objective with 1031 Exchanges including greater leverage, diversification, improved cash flow, geographic relocation, and/or property consolidation. … (2 comments)
Why would I want to be involved in an Exchange?Do you own "management intensive" Real Estate? Or perhaps you own property you purchased or inherited years ago and would prefer another property. You have probably realized good returns on investment that will otherwise be lost to the IRS. The sale of every property is a potential tax event with the tax consequence being realized after the closing of the property. Section 1031 was written into the Internal Revenue Code in the 1920's. The IRS realizes that your investment in Real Estate spurs the economy onward, however upon the sale of the … (2 comments)
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