Welcome
to 1031 Exchange Experts - We are the best Qualified
Intermediary in the business! That's not just bragging;
call us and find out WHY. |
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Nationwide, Toll-Free:
866-694-0204
Anytime,
day or night, 24/7, even weekends!
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 Shelly:
I had a 1031 Exchange in 2007,
but now my CPA says that I
have to pay capital gains tax.
Purchased for 79K, 26K In improvements
and sold for 180K. Reinvested
75K on new property, |
 1031
James: Shelly, It
appears you did not reinvest
all the cash. You must obey
all the IRS's rules to the
letter to have a successful
1031 |
| Michael:
We hold property in a CA LLC
we'd like to exchange into
a TX LLC. Will this qualify
since the old and new will
be held by different entities?
We're trying to not continue
business with CA. Thanks for
your help. Michael |
 1031
Tracey: Is the CA
LLC a Single or multi-member
LLC? If it's SMLLC,
then the 'short' answer is
YES. If it's a multiple-member
LLC, then the answer is MAYBE:
depending on its stucture. |
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| Bare Bones Basics
of a 1031 exchange |
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James
Schuler
Dir. of marketing communications for
1031 Exchange Experts, LLC |
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People
who have only heard of 1031 exchanges
know this much: it has something to do with real
estate. Basically, a 1031 exchange works like
this:
- first, you call a 1031 exchange
expert (a 'qualified intermediary,' or 'QI').
They start the exchange process for you.
- work with a realtor to sell
your old property
- at the closing, the money
goes straight from the closing to
your QI. (I explain why below)
- work with a realtor to buy
a new property.
- when you finally close on
your new property, the QI sends your money
to the closing.
In this way, you
buy and sell real estate without handling any cash.
Technically, in the eyes of the law, you're actually
TRADING properties with someone. If you possess,
hold or control the money at any time between the
sale of your old property and the purchase of your
new, it becomes taxable to you. That's why when
you sell your old property, it bypasses you and
goes straight from the closing to the QI. Later,
it will go straight from the QI to the closing
of your new property.
Why not just buy and sell outright?
Because when you sell something, your fingers touch
taxable income. At least.... |
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1031News
This Week |
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05/21/2008 |
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Where's
Your Commingled Exchange Account Invested? |
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Gary Gorman
Founder, Managing Partner, 1031 Exchange Experts, LLC |
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Interest
rates on separate exchange
accounts are currently in the toilet. So
it’s not surprising that taxpayers
who are doing 1031 exchanges are intrigued
with Qualified Intermediaries that offer
a high rate of interest on their exchange
accounts. But how are they earning those
rates? If you use them to do your exchange,
what will they be investing your money
in? Will you even know where your money
is? Most intermediaries
commingle their client’s money....
read
more....
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05/13/2008 10:06:00
AM
Section 1031 of the IRC allows you to defer
the capital gains tax upon the sale of qualified
real estate and/or personal property used for
business, but one of the requirements of doing
an exchange is that the exchanger/investor
must use a Qualified Intermediary or QI. So,
how do you find a good QI...?
After a court case (91 AFTR 2d 2003-1850) there
is an obvious criteria. Most QIs place their
clients' money in a commingled, escrow-type account.
This can be disastrous: if something goes....
read
more... |
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