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| JOIN: |
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| 14:44:08 |
Gary
Gorman has joined chatroom |
| Admin:
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|
| 15:03:35 |
Welcome
all to Live Online Chat With Gary Gorman of The
1031 Exchange Experts. Gary Gorman has over 30 years
of real estate tax experience. He received his BS
degree in Accounting from Mankato State University
in Mankato, Minnesota in 1972. He received his CPA
certificate from the State of Minnesota in 1974.
He has over 10 Years of Big 6 CPA firm experience
where he served as a tax manager with Price Waterhouse
& Company. |
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| james:
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| 14:53:52 |
Can
I do an exchange on a vacation house [1031
vacation home update: May 2007] ? |
| Gary
Gorman: |
| 14:55:05 |
Yes,
there is a 1981 IRS ruling that allows this - but
you need to prove investment intent. |
| james: |
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| 14:56:23 |
Thanks,
Gary. I'll look into it. :-) |
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| Gary
Gorman: |
| 15:00:55 |
does
everyone understand that a 1031 exchange is just
for investment property - NOT for property held
for resale? |
| wctem: |
|
| 15:01:48 |
what's
the difference in investment prop & prop for
resale? |
| Gary
Gorman: |
| 15:02:50 |
good
question! - property held for resale is typically
held for less than one year. |
| Gary
Gorman: |
| 15:03:12 |
a
fix and flip would be a good example of held for
resale |
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| wctem: |
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| 15:03:06 |
how
do i know if my funds are safe? |
| Gary
Gorman |
| 15:04:04 |
you
don't know if your funds are safe. best bet is to
look for an intermediary that is bonded and make
sure they put your money in a separate account -
not commingled. |
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| ROB: |
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| 15:05:25 |
If
an Exchanger intends to perform an exchange that
is fully tax deferred, what requirements must they
meet? |
| Gary
Gorman |
| 15:06:44 |
there
are 6 things - 1) must be held for investment 2)
have 45 days to identify 3) have 180 days to purchase
4) must use a qualified intermediary 5) must take
title to the new property in same name as old 6)
must buy equal or up, 45 and 180 day requirements
are concrete - no extensions, if you don't buy equal
or up, you just pay tax on the amount of the buy-down,
if you buy down, all of the buy down will typically
be taxable, no offset for basis (cost), you must
also reinvest all of the cash from the sale of your
old property, if you sell the old property in new
england, you can buy any where in the US - but not
in canada |
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|
| Admin: |
|
| 15:12:00 |
for
all of you just joining, we are asking questions
to Gary Gorman of 1031 exchange experts,
simply
type in a question and Gary will answer you
|
| Gary
Gorman |
| 15:13:23 |
yes
- please ask your questions |
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| ROB: |
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| 15:09:51 |
What
is a mortgage boot? |
| Gary
Gorman |
| 15:14:21 |
boot
is the term the irs uses for taxable. so if you
buy down the taxable part is called "boot" |
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| ROB: |
|
| 15:14:12 |
What
type of property qualifies for an exchange? |
| Gary
Gorman |
| 15:14:49 |
any
property held for investment qualifies, you can
sell a rental house and buy an office building,
bare land, etc., you don't have to buy all you list
- but what ever you buy has to be on the list |
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|
| Admin: |
|
| 15:15:58 |
what
is the 45 day identification? |
| Gary
Gorman |
| 15:16:44 |
you
have to list the properties you MIGHT buy w/in 45
days. typically you would list 3 or less |
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| Gary
Gorman |
| 15:17:59 |
have
you heard of a reverse exchange? a reverse exchange
happens when you need to buy the new property before
you sell the old ... irs will not let you be in
title to both; typically the intermediary takes
title and holds it for you. |
| ROB:
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|
| 15:20:13 |
Can
you still benefit from a reverse exchange |
| Gary
Gorman |
| 15:21:14 |
yes
- reverse exchanges are very beneficial if you find
a hot property you want to grab
... reverse
exchanges work well when the contract for the sale
of your old property falls thru |
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| wtorby: |
|
| 15:18:52 |
Hi
Gary, With regards to 2 owners, How long after the
exchange can 1 owner quit claim the other off, |
| Gary
Gorman |
| 15:19:35 |
wtorby:
it depends on the relationship of the two. best
is to wait a year |
| wtorby: |
|
| 15:19:30 |
and
if there is not money involved in the quit claim,
will there be any taxable issues |
| Gary
Gorman |
| 15:20:04 |
yes
- there could be gift issues, etc. depending on
the relationship |
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|
| Steve: |
|
| 15:21:57 |
can
you describe a "coffin" exchange? |
| Gary
Gorman |
| 15:22:44 |
i've
never heard of a coffin exchange. slang? |
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|
| Admin: |
|
| 15:24:14 |
For
all of you just joining, we are asking questions
to Gary Gorman of 1031 exchange experts on it ...
Simply type in a question and Gary will answer you |
|
|
| ROB: |
|
| 15:25:19 |
what
does the related party rule consist if? |
| Gary
Gorman |
| 15:28:00 |
can
not buy from or sell to any one related |
| Gary
Gorman |
| 15:28:27 |
related
is parents, grandparents, brothers & sister,
children & grandchildren |
| Gary
Gorman |
| 15:28:44 |
aunt
ruby is NOT related |
| ROB: |
|
| 15:28:42 |
thanks |
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|
| Admin: |
|
| 15:25:48 |
Gary
do you have a website and email address were we
can visit you and find out more about a 1031 exchange?
Please tell everyone where you can be reached. |
| Gary
Gorman |
| 15:26:31 |
yes
- great web site: www.expert1031.com ...
toll free 866-694-0204 ...
free consultation w CPAs and tax and accounting
professionals |
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|
| Admin:
|
|
| 15:28:39 |
We
would like to thank Gary Gorman and The 1031 Exchange
Experts for their time. |
| Gary
Gorman |
| 15:29:07 |
thank
all of you for your questions |
| QUIT: |
|
| 15:30:56 |
Gary
Gorman has left chatroom. |
| Admin: |
|
| 15:30:17 |
If
you would like to review this or any other of our
Live Commercial REChatRoom sessions please check
our Chat Archives. |
