waiyew lam: 1031 Exchange Company.
- 05/08/08 05:56 AM
If you were to exchange your investment property utilizing the benefits of IRC Section 1031, you can defer the tax on the gain, allowing reinvestment of all your equity in to one or several investment properties. In these transactions, 1031 exchange companies (Qualified Intermediaries) are required by the IRS to hold onto the cash proceeds until investors identifies the new replacement property and closes escrow within 180 days. Since exchange companies are not regulated at both State and Federal level with the exception the State of Nevada, increasingly, there are more and more abuses committed by such companies out there. … (0 comments)
waiyew lam: Related Party Transaction - 1031 Exchange
- 05/07/08 09:12 AM
If you were to exchange your property utilizing the benefits of IRC Section 1031, you can defer the tax on the gain, allowing reinvestment of all your equity in to one or several investment properties. However, great care must be taken when investors tries to complete their exchange by either selling or buying to a related family party. Under IRS's definition, related parties include, but not limited to, immediate family members, such as brothers, sisters, spouses, ancestors and lineal descendents. Related parties do not include stepparents, uncles, aunts, in-laws, cousins, nephews, nieces and ex-spouses. A corporation, limited liability company or partnership … (1 comments)
waiyew lam: What is a Business exchange?
- 04/10/08 11:14 AM
BUSINESS EXCHANGE: If a owner of a business seeks to dispose of the business, doing so in Section 1031 exchange can result in significant tax savings. The business owner may want to dispose of one business in one metropolitan market in order to focus on another metropolitan market. Business types that may be eligible for 1031 exchange are; distributorships and franchises, including cable televisions, beer distributorships, restaurant franchises, gas station franchises, laundry franchises, and Professional services practices are just a few. The exchange must be broken down into individual exchanges by category of "like-kind" assets. For example, the value of the … (0 comments)
waiyew lam: What is a Reverse exchange?
- 04/10/08 11:10 AM
REVERSE EXCHANGE: The reverse exchange is a specialized exchange arising from a situation in which an exchanger must acquire the replacement property prior to selling their relinquished property. Since it is impossible to exchange properties when you own both properties at the same time, a reverse exchange is required if the replacement (purchase) property escrow must close before the relinquished (sale) property escrow closes. Types of Reverse Exchange Transactions Type A: The Intermediary assigns into the purchase contract and takes title to the replacement property. The exchanger has 180 days from close of escrow on the replacement property to sell the … (0 comments)
waiyew lam: What is a Delayed Exchange?
- 04/10/08 05:14 AM
DELAYED EXCHANGE: As an investor in real estate, you understand how important it is to preserve your wealth and assets. If your investment property has appreciated in value or you have depreciated the property, a sale would require the payment of tax on the capital gain of up to 30% or more (combined federal and state). However, if you were to exchange your property utilizing the benefits of IRC Section 1031, you can defer the tax on the gain, allowing reinvestment of all your equity. The 1031 Tax Deferred exchange offers great flexibility to the investor. You may exchange one property … (0 comments)
Self-directed IRA transactions, investments, retirement administrator. Over 20 years of experience, and have performed over 5000 transactions passing all IRS audits and reviews. Adelphi Retirement Management, Inc.
If you were to exchange your investment property utilizing the benefits of IRC Section 1031, you can defer the tax on the gain, allowing reinvestment of all your equity in to one or several investment properties. ;)
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