1031 Tax Deferred Exchange
Information
Section 1031 Exchange Properties - About
This is simply a method by which a real property owner
disposes of one property and acquires another without having to pay any capital gains tax on the transaction. In an ordinary sale transaction, the property owner is taxed on any gain realized by the sale of the property. In an exchange, the tax on the exchange is deferred indefinitely.
Section 1031 Exchange Properties (Read More )
Section 1031 Exchange Properties - Requirements
Two basic 1031 Exchange Requirements
to qualify for 1031 status:
- The property exchanged must be of like-kind.
- The property must be held for productive use in trade, business or investing.
Investment property sold in any state can be designated as a 1031 tax exchange candidate in the sales contract. This must be stated in the initial sales contract. Any investment property can then be used as a tax deferred exchange vehicle to buy investment property. It does not matter who purchases your property or what they intend to do with it. You must, however, decide what property is to be exchanged within 45 days after you sign the sales contract. The entire transaction must be completed within 180 days. Funds must be held in an escrow account with an exchange agent until the sale is completed.
Estimating the Capital Gain Tax on the Sale of Investment Property
Section 1031 Exchange Properties Assistance - Don Meredith
Don is a frequent guest on real estate talk radio. He has been a licensed registered representative for 17 years and is Director of West Coast Operations for Concorde Exchange Group, a member of NASD/ SIPC. Don Meredith has written a monthly consumer finance article for the senior newspapers and magazines for several years.
Member of AOA the Apartment Owners Association
Member TIC Tenant in Common Association
Member San Diego Better Business Bureau
President Rancho Santa Fe Rotary International
Holds an CA real estate sales license
Holds CA. Insurance Lic. 0A99293 - CA Dept. of Insurance
President of The Pacific Coast Appaloosa Promoters
