Planning a 1031 Exchange Investment isn't that easy. It requires a proper understanding of the subject and the best possible assistance from someone who has some experience in this field. We'll try to help you with both in this blog. But before that, let's check out what a 1031 exchange offers?
What does Section 1031 Offer? Section 1031 of IRC or a 1031 exchange is a tax-deferred exchange of properties. It allows investors to defer capital gains tax on exchanging an investment property for another like-kind property. As per the rules, properties involved in a 1031 exchange must be held for use in trade, business or for investment purposes. In other words, you can't exchange an investment property for a primary residence, the replacement property must also be an investment property. Not to mention, 1031 exchange allows tax-deferment, it isn't tax-free. 1031 Exchange Rules-
There is a big misconception that in 1031 exchange Investment an investor can identify only one replacement property. However, it's not true. The IRS allows 1031 investors to identify one or more replacement properties as long as a few requirements are fulfilled.
As you can see, Section 1031 has quite strict rules when it comes to deadlines and identification of the property. Though 180 days may look enough, they aren't sometimes. Therefore, it's important that you talk to a 1031 advisor first and then plan your exchange. To speak to a 1031 advisor, you can call 888-993-2835 or email us at [email protected]
0 Comments
|
AuthorWriter or Blogger on 1031 exchange . we guide those people who want Defer your capital gains taxes and upgrade your investment Archives
October 2019
Commercial Real Estate |