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Rainmaker
658,176
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

First you must have a qualified 1031 intermediary. To this day, I find it shocking that people call me up in escrow telling me that have 1031 money getting ready to close escrow and they do not have an exchanger. I'm like you are so screwed in five, four, three. The money must never touch your hands!

Feb 12, 2019 05:10 PM
Ambassador
3,060,745
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Best 1031 Exchange faciliators I've ever worked with - it's a husband and wife team and they are on the ball. Their turn-around time is incredibly fast - you're going to want to keep their contact information for your 1031 exchanges! Good luck!

John & Sarah Starling

National Realty Exchange Services

105 Hallbrook Farms Cir.

Wilmington, NC 28411

910-233-5050

john@nrx1031.com

Feb 12, 2019 06:47 PM
Rainmaker
913,050
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

That's a conversation the RE investor needs to have with their CPA. 

Feb 12, 2019 02:30 PM
Rainmaker
2,854,561
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

I have no idea... this is a question to be covered between a CPA and his/her client with the assistance of a tax/real estate attorney.

Feb 12, 2019 03:15 PM
Rainmaker
775,789
Diana Zaccaro "The Accidental Blogger"
Tropical Realty Beachside brokered by eXp - Cocoa Beach, FL
Your Brevard County, Florida coastal connection!

Each investor's needs and situation is different so they need to consult their team of experts...CPA, RE attorney, tax attorney, etc. for professional advice.

 

Feb 12, 2019 10:22 PM
Rainmaker
493,512
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

They can save on the Real Estate Sales Tax by doing a 1031 but they have to follow the rules for the sale & purchase. An Attorney qualified in 1031 transactions could be of assistance. 

Feb 12, 2019 05:30 PM
Rainmaker
3,054,814
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

By carefully assesssing opprtunities and seeking the advice of an expert third party exchange agent along with advice from their CPA and attorney. With that team in place they can defer taxes and continue to build equity. At some point the tax bill becomes due!

Feb 12, 2019 04:04 PM
Rainmaker
1,493,985
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

Frankly, in my 16 years of real estate I still have yet to work with a RE investor. I think in our area they prefer to go through an RET or an attorney Andrew Cooper .

Feb 12, 2019 02:19 PM
Rainmaker
418,479
Greg Large
ERA Real Solutions - Grove City, OH
A Tradition of Trust

If your instructor tells you to ask a question about 1031 exchanges for your license exam, you need to find a better school.  I doubt any questions for your license will have anything to do with 1031 exchanges.

Feb 13, 2019 04:28 AM
Rainmaker
1,230,168
Carol Williams
U.S.: I specialize in helping agents who have been in the business 2 years or less create a thriving business. - Wenatchee, WA
"Customized Mentoring & Marketing Services"

It is an investor tax deferrment strategy and best to discuss with your CPA and a 1031 Exchange specialist to be sure you are staying within all required quidelines and deadlines.  

Feb 12, 2019 05:44 PM
Ambassador
3,891,418
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Important to do these correctly, get competent representation.

Feb 12, 2019 05:21 PM
Ambassador
1,576,446
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

You should take a separate class on this 

Feb 12, 2019 03:15 PM
Rainmaker
4,744,793
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

there's only one proper and safe way to take advantage of a 1031 exchange and that's by first hiring a real estate attorney.... 

Feb 12, 2019 02:57 PM
Rainmaker
4,187,771
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

This is a tax strategy, and it better to ask a CPA or a Tax Attorney.  They are strict rules to follow, and it has an intermediary who handles the transaction.  A

Feb 12, 2019 02:47 PM
Rainmaker
724,181
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

A 1031 exchange (aka 'like kind' exchange) is a tax management tool. Deferring, delaying or avoiding taxes is not a bad idea. How this applies to the benefit of an individual investor really depends on their situation.

An account or attorney my suggest a self-directed IRA or self-directed ROTH IRA and LLC as a more beneficial option.

It is all about tax management.

Feb 12, 2019 02:30 PM
Rainmaker
712,446
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Andrew, somehow I think you are missing the point of your instructor's assignments. AR should not be used for Q's that have legal, factual answers; those should be researched or sought from proper experts in the field. 

Feb 13, 2019 06:10 AM
Rainmaker
5,121,016
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Carefully follow tht IRS guidelines.

Feb 12, 2019 05:59 PM
Rainmaker
621,640
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

It depends on the specific transaction.

We have companies that specialize in being mediaries for 1031 exchanges. They and tax professionals are the best source for the answer to your question. There are specific rules to be observed to achieve the purpose of a 1031 exchange.

Feb 12, 2019 03:55 PM
Rainmaker
893,116
Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Tax-Free is the way to be!

Feb 13, 2019 05:47 PM
Rainmaker
1,187,958
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Sell one and use the proceeds to buy more than one property.  Or invest in other approved areas.

Feb 13, 2019 10:15 AM
Rainmaker
2,733,214
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

I've helped many clients with 1031 exchanges and always use a qualified intermediary. Tax laws are what they are ... they need to be followed or there are consequences.

I wish you all the best with your studies. 

Feb 13, 2019 08:08 AM
Rainmaker
4,789,919
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

By following the rules.

Feb 13, 2019 06:37 AM
Rainmaker
2,781,545
Richard Weeks
Dallas, TX
REALTOR®, Broker

Defer the payment of capital gains tax.  

Feb 13, 2019 06:21 AM
Rainer
276,618
David M. Dwares
Title Professionals Corp. - Fort Lauderdale, FL
Title guy with a broker license

Just Google "1031 exchange" and hundreds of sites will come up, most containing detailed explanations of what it is and how it works and benefits to investors

Then tell your instructor you obtained the information on the Active Rain Q&A Section.

Feb 13, 2019 06:17 AM
Rainmaker
4,429,923
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good luck.

Feb 13, 2019 03:22 AM
Rainmaker
3,963,190
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Start by contianing a good com pany that does these..

Feb 17, 2019 04:07 PM
Rainmaker
3,956,195
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Have done a few, and a good program for investors.  Follow the rules.

Feb 16, 2019 05:45 AM
Rainmaker
2,965,797
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Take a class at your title company on it.

Feb 15, 2019 08:27 AM