| Bare Bones Basics
of a 1031 exchange |
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Phillip M. Ladd
Director of Reverse Exchanges for
1031 Exchange Experts, LLC |
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If
you own business or investment property,
you may be able to save thousands of dollars
by exchanging your assets instead of selling
them.
A like-kind exchange
under Internal Revenue Code Section 1031 allows
you to defer the taxes on capital gains by
exchanging rather than selling. This tax deferral
is available for both real estate (dirt and
everything screwed into it) and personal property
(things you can pick up and move). This can
save you in Federal and State taxes anywhere
from 15% to 35% on each dollar of gain realized,
depending on your state’s tax rates.
There are a few basic steps that will be required
under code section 1031 to enjoy this great financial
advantage.
Step 1. A ‘Qualified
Intermediary,’ or ‘QI,’ must
be used to facilitate the exchange to satisfy
the IRS requirements for a valid 1031 exchange.
Using a competent QI helps to ensure an exchange
will be OKd by the IRS. The QI participates in
the exchange on the taxpayer’s behalf by
buying and selling assets, and holding the sales
cash for the taxpayer.
Step 2. Once you have sold
your business or.... |
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1031News
This Week |
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07/16/2008 |
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UNCERTAIN TIMES: Planning
Your Real Estate Tax Alternatives |
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Gary Gorman
Founder, Managing Partner, 1031 Exchange Experts, LLC |
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These
are crazy, uncertain times.
If you’re selling a property, do
you know what to do? Do you sell it and
pay the tax, or do you roll the dice on
a 1031 exchange? Is this a once-in-a-lifetime
opportunity to take your gain at a low
tax rate (as low as we may see for awhile)?
Or is paying the tax simply a waste of
money? What if I told you there is a way
to take the guesswork out of your decision?
As I write this,
McCain and Obama are neck and neck in the race
to see who will be the next....
read
more....
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06/30/2008 09:56:00
AM
I was under the impression that only Corporations
and LLCs could be considered Disregarded Entities.
Answer – Only a one-person LLC can be
considered a disregarded entity – a one
person LLC does not file a tax return.
It flows through to the individuals tax payer's
ID
read
more... |
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This Week's
TEE-Shot |
07/01/2008 |
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What
ELSE can I 1031 Exchange . . . ? |
While we here at The Experts are
doing our part to promote real estate back to its'
former glory, there are other things you can do
to save on capital gains taxes in the meantime.
Section 1031 of the Internal Revenue Code allows
investors to sell and buy property, and defer
paying the taxes on their gains. And yes, MOST 1031
exchanges are indeed for real estate, but not
JUST traditional real estate as most people think
of it. The term 'real estate' also includes things
like oil and gas properties, mineral rights,
mining rights, water righ....
...to
read more, subscribe to Tee-Shots! |
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