The IRC Section 1031 of the tax code is the single biggest advantage real estate investors have over all other investors. The ability to roll over taxes to the next sale is a great way to build wealth, not lining Uncle Sam’s pockets. Unfortunately, the time frame for a 1031 exchange can seem confusing at …
Read moreTime Frame for 1031 Exchange – Stop Worrying and Read This Now!
You’ve decided a 1031 exchange is right for you. Your investment property has appreciated, and you want to get chips off the table. Or, you’re looking to “trade-up” and use the sale money for a down payment on a larger property. Rather than pay thousands in taxes, you’re looking for a qualified intermediary for your …
The “delayed exchange” or “forward exchange” is the most common type of 1031 exchange. When real estate investors or tax specialists refer to a 1031 exchange, they are usually talking about this type of exchange. A delayed exchange allows you to sell an existing investment property and defer paying taxes. The rules are simple: You …
Choosing a qualified intermediary can seem like full-time job. There are many things to consider such as: Is my qualified intermediary reputable? How do I know the qualified exchange company won’t lose my money? The qualified intermediary I’m talking to is halfway across the country. Can I do an exchange over phone and email? Will …
Read moreDon’t Choose a Qualified Intermediary Before Asking Them These Questions
This is the oldest and most basic type of 1031 exchange. Very rare, it’s when you find a replacement property the same value as your own. While we still recommend using a qualified intermediary, a simultaneous exchange could happen without one. This article walks through the three types of simultaneous exchange. Swap or two-party trade …
Read moreSimultaneous Exchange – The Absolute Easiest 1031 Exchange Possible
Introduction The least known but fastest growing type of exchange is the improvement 1031 exchange. Also known as a build-to-suit or construction exchange, it allows you to use part of the value in your old property to improve a new property. Say you sell a property worth $400,000. You can then purchase a $250,000 property …
Read moreImprovement 1031 Exchange – Rules, New Construction, Rehab Costs
You’ve decided a like-kind exchange is right for your situation. One of the hardest things to find out online is how much does a 1031 exchange cost? This article is your inside scoop on qualified intermediaries and how much they charge. We’ll cover the upfront costs for any 1031 exchange, costs that depend on your …
Read moreHow much does a 1031 Exchange Cost? Here’s How To Avoid being Ripped Off
Have multiple properties you’re looking to sell and wondering how to reduce your taxes? Or, are you selling one property and purchasing multiple properties? This article will explain how you do a 1031 exchange with multiple properties. Relinquish One Property and Buy Multiple Replacements The most common situation when multiple properties are involved in a …
Read moreCan You Do a 1031 Exchange with Multiple Properties? This Article Will Save You
The rules for a 1031 exchange (also called Like-Kind or Starker exchange) can seem complicated and a little bit scary. This guide walks through the requirements, rules, options, and various examples. You’ll know why real estate investors love the tax benefits of a 1031 exchange! What is a 1031 Exchange? The 1031 Exchange was established …
Read more1031 Exchange for Dummies – Your Definitive Guide to Rules, Tax Deferral, Timelines
If you’re like some real estate investors, you’d never heard of depreciation recapture on rental property until your first property went up for sale. “What will my depreciation recapture tax rate for 2019 be?” “Will I need to do an installment sale?” “Will a 1031 exchange help me avoid depreciation recapture tax and capital gains …
