In the past couple of months, we’ve written about like-kind exchanges (also called the IRS 1031 swap) as well as the tax benefits associated with one. An exchange of like-kind occurs the case when a taxpayer who has an investment property decides to sell it, using an approved intermediary, and purchase a replacement property within a …
Your spouse and you can delay paying taxes on selling an investment asset by swapping it in exchange for an investment property of another type. This clever investment choice is known as a similar-kind exchange, also known as a 1031 exchange. It permits you to delay paying your tax bill until you have sold your new …
Calculating The Basis Of A The New Property In An Exchange Of 1031 Read More »
One of the frequent questions we receive from those seeking to complete an exchange in 1031 form is if they are able to make an exchange of 1031 funds from their vacation home (relinquished property) into a comparable qualified home (replacement property) in a tax-deferred basis by using the 1031 exchange? In the past there …
1031 Like-Kind Exchanges For Vacation Homes And Second Homes Read More »
Making 1031 Exchange In The Correct Way There are numerous advantages with investing in a property investment property. They range from diversification the creation of equity to the potential for cash flow and tax benefits. Selling an investment property or rental property can be accompanied by the possibility of 4 taxes, which will consume a significant portion …
If you’re one of the many people who invest in real estate, the chances are you’re always evaluating your portfolio of real estate to see if the equity is put to the right direction. That means making the most of the many real estate alternatives to see whether you can pull the equity and put it …
1031 Exchange Vs. Credit Refinance Cash Out: Which Is The Best Option For You? Read More »
The possibility of delaying tax payments within the real estate industry or even within qualified retirement plans, such as IRAs permits the investor to increase their wealth faster which will provide investors with more capital and income in retirement. Although many do not favor investing in real estate and instead prefer bonds, stocks and mutual funds …
With the many tax advantages which come with the 1031 exchange however, there has been significant fraud over the years from investors who have utilized different “related parties” strategies or methods to delay, avoid or even dodge the payment of taxes on income. Over the past 10 years 1031 Exchanges have definitely not been exempt …
1031 Exchange Related Party Rules: What You Need To Be Aware Of Read More »
An Real Estate Investment Trust (REIT) is similar to a stock bond mutual fund however instead of holding bonds or stocks it is a real estate investment trust. REITs rarely own single-family rentals , instead they put their money into an investment portfolio that includes institutional property which they buy and sell at any time. For investors …
There are certain requirements to identify and acquire potential replacement properties during the exchange of 1031. In an exchange that is typical the identification timeline begins with the date you sell your property that you had relinquished at the 45 day calendar day following the sale. After being identified Once you have been identified, after being identified, IRS …
The process of selling a rental property isn’t as simple as just taking the cash and leaving. Depending on the amount you earn and the length of time you’ve owned the property you could be subject to substantial taxes on capital gains (CGT) fees. It means that you’re losing out on the revenue-generating asset you’ve invested in …
Four Legal Methods to Defer Capital Gains Taxes on Investment Property Read More »
