zero equity 1031 exchange: Losing a Rental Property Thru a Short Sale? Consider a Zero Equity 1031 Exchange! - 05/10/10 09:28 AM
You are probably asking yourself "why would I even need to think about a 1031 Tax Deferred Exchange if I'm losing my rental property through a short sale transaction?"  The answer is an easy one, but its one that many investors going through a short sale on rental property may not be aware of. 
Short Sale Scenario
Our story begins with a real estate investor who has been acquiring and accummulating rental property over the last five years.  The investor has also been refinancing all of his or her rental properties every six to twelve months in order to pull the cash equity … (15 comments)

zero equity 1031 exchange: Property Sold Via SHORT SALE May Still Have TAXABLE CAPITAL GAIN - 08/14/09 06:34 AM
Selling rental property, investment property or commercial owner/user property via a short sale may still trigger capital gain taxes.  The seller often focuses on the fact that they have no equity in the property and therefore assumes that they have no tax liability either.  However, having equity or no equity has absolutely no bearing on whether they have a taxable capital gain in the real property. 
Background Information
This is an issue that many rental or investment property owners have probably not given much thought about.  They own rental or investment property that is underwater (i.e. the real estate is worth less … (0 comments)

zero equity 1031 exchange: Doing a Short Sale on Rental Property? Look Into the ZERO EQUITY 1031 EXCHANGE! - 06/12/09 11:39 AM
You may be thinking "why would I need a 1031 exchange if I'm going through a short sale".  The answer is easy, and one that many investors going through a short sale have not even thought of. 
Short Sale Scenario
Our story begins with an investor has been acquiring and accummulating rental property over the last five years.  The investor refinances all of his or her rental properties every six to twelve months in order to pull the cash equity out of the property and acquire more investment property.  They maintain the loan-to-value ratio as close (as high) to 100% as … (4 comments)