| Bare Bones Basics of a 1031
exchange |
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Cody Walkup
for 1031 Exchange Experts, LLC |
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In
simple terms, a 1031 safe exchange moves
the gain from the sale of an old investment
property into the purchase of a new investment
property. By moving the gain into a new property,
you defer paying tax on that gain into the
future.
For example, suppose
Jane Doe sells her rental house for $200,000.
She bought it five years ago for $150,000.
Now using a 1031 exchange, she buys another
investment property for $200,000. By following
the IRS’s requirements, she is able to
transfer all her gain into her new property
instead of paying taxes on the sale.
Since the most recent
real estate boom, people have become more aware
of 1031 exchanges than ever before. Even with
this increased awareness, there are still some
prevalent misconceptions about this specific
section of the tax code. As a 1031 exchange consultant,
I hear these misconceptions everyday. Here are
the most frequent three I hear:
1) I’m selling a rental house,
so now I have to buy a rental house.
This is not true. The
IRS uses the term “like-kind,” but
for real estate this is very
broad. Both your old a.... |
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1031News
This Week |
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PREVIEW: 07/01/2009 |
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Gary Gorman
Founder, Managing Partner, 1031 Exchange Experts, LLC |
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Can
you sell multiple properties in
a 1031 exchange and roll all the gain into
one larger property? A normal 1031 exchange
has certain rules, and selling multiple
properties doesn’t change those rules.
But it certainly presents speed bumps that
you’ll need to overcome. Nothing
difficult, but things you will need to
think about and that will take patience
and discipline at the beginning of your
transaction.
The first speed
bump involv....
Read
the rest of, "Speed Bumps: Selling Multiple
Properties in a 1031 Exchange" here....
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1031 Exchange Experts, LLC, specialize in SAFE EXCHANGES.
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This
Week's TEE-Shot |
07/03/2009 |
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A
partnership had two partners: A and
B. B wanted to sell his 50% interest to A.
Since A already owned the other 50%, when he
acquired the interest and the transaction was
completed, he would own all of the partnership.
A had not yet soldhis
old property. His plan was to sell his old
property and then buy B’s 50% interest
in the partnership by doing a 1031. Normally
this wouldn't be allowed, but read here why
the IRS allowed it in THIS case.
...to
read the rest of "Odd Structure OK'd by
IRS in 50% Partnership Reverse Exchange?" subscribe
to Tee-Shots! |
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We specialize in SAFE EXCHANGES.
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07/01/2009
9:05:00 AM
IRS
Form 8824: This is the official 2-page
form that you submit with your federal
tax return to report the details of your
1031 exchange. You may be required to submit
additional tax forms and calculations that
relate to your exchange, but 8824 is the
only form used for reporting the exchange
itself.
You must file Form 8824
with your tax return for the year in which
you sold or transferred property in an exchange,
regardless of when you purchased the....
see,
"How do I report my 1031 exchange to the
IRS?" here
We put your money in a separate
account, with your name on it. |
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Updates
