1031 Exchange Experts | Home Page

Time 2021-08-19 11:05:21

Web Name: 1031 Exchange Experts | Home Page

WebSite: http://www.expert1031.com

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It's mid-2021 and the real estate market is red hot. Good properties come on the market but don't last long — sometimes only hours or minutes, and oftentimes there are multiple offers competing against you. As a result, a common question we get right now is, "can I buy a property that is owned by a... + continue reading Section 1031 is an IRS code that allows you to defer real estate capital gains taxes (in some cases, a lot of capital gains taxes). The rules aren't impossible to follow, but they aren't easy, either.One of the rules that causes a lot of angst, especially in a fast-moving real estate market like we... + continue reading The Internal Revenue Service recently announced that Texas taxpayers—including 1031 exchangers—can have up to June 15, 2021 to file returns, identify replacement property, purchase replacement property, or make other payments due to the chaos caused by February’s winter storms.For... + continue reading Finally, the dust appears to have settled, the drama has ended, and the Biden regime has begun. So where are we now, and what do I think the 1031 Exchange industry can expect in the foreseeable future?I've been writing a prediction article every year or so since about 1998—especially when we've had... + continue reading The Tax Plan proposed by Democratic presidential candidate Joe Biden would eliminate 1031 exchanges for investors who have ordinary annual income of $400,000 or more. If one assumes this $400,000 cap includes the gain from the actual sale of real property, in addition to a taxpayer's ordinary... + continue reading WHAT IS A 1031 EXCHANGE?When selling a business or investment property, and a gain would be realized, Internal Revenue Code Section 1031 provides for an exception, allowing for tax on the gain to be postponed if the proceeds are invested, in a "like-kind" property exchange. Gain deferred in this like-kind exchange under IRC Section 1031 would be tax-deferred, but not tax-free.1031 Exchange DefinitionYou might be wondering, how does a 1031 exchange work? There are certian rules to consider. A properly structured 1031 exchange allows an investor to sell a property, to reinvest the proceeds in a new property and to defer all capital gain taxes. IRC Section 1031 (a)(1) states:"No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like-kind which is to be held either for productive use in a trade or business or for investment."To understand the protection a 1031 exchange offers, consider the following example for investors:An investor has a $200,000 capital gain and incurs a tax liability of approximately $70,000 in combined taxes (depreciation recapture, federal and state capital gain taxes) when the property is sold. Only $130,000 remains to reinvest in another real estate property.If we assume a 25% down payment and a 75% loan-to-value ratio, the seller would only be able to purchase a property worth $520,000.If the same investor chose to do a 1031 exchange, however, the entire $200,000 of equity would be able to reinvested in the purchase of $800,000 in real estate, with the same down payment and loan-to-value ratios as above.Do you see the power of the 1031 exchange? What makes us 1031 Exchange Experts? Years of experience, and walking client after client through the process. Feel free to contact our office today for professional assistance with your 1031 exchange. Related Party Rules for 1031 Exchanges in 2021 Friday, 28/05/21 - 0 comment(s) It's mid-2021 and the real estate market is red hot. Good properties come on the market but don't last long — sometimes only hours or minutes, and oftentimes there are multiple offers competing against you. As a result, a common question we get right now is, "can I buy a property that is owned by a relative?" Section 1031 law does not allow you to... + continue reading Gary Gorman has over 40 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 1978. He has over 10 Years of Big 6 CPA firm experience where he served as a tax manager with Price Waterhouse Company.Phone: 866-694-0204Email: Ask@Expert1031.com

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1031 exchanges, at least as we know them today, have been around since 1991. What makes us 1031 Exchange Experts? Years of experience, and walking client after client through the exchange process.

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