Understanding 1031 exchange

Internal Revenue Code, which allows you to avoid paying capital gains taxes when you sell an investment property and reinvest the proceeds from the sale within certain time limits in a property or properties of like kind and equal or greater value. Uploaded by Asset Preservation, Inc. Trust the experts at Equity Advantage to know exactly how.

It has been a major part of the ​success strategy of countless financial wizards and real estate gurus. In real estate investing, there is a way to defer the taxes paid on capital gains.

It is important for a taxpayer to understand what can result in boot if taxable . Real Estate › Guides investorjunkie. In a typical transaction, the property owner is taxed on any gain realized from the sale. Once a property sale . The concept itself is simple: Reinvest the proceeds from the sale of a business . Mirr Ranch Group explains how it works, and how ranch buyers can take advantage of this tax-saving strategy.

With the limited exception of . Depreciation recapture is a significant factor in participating in a like-kind exchange.

While capital-gains tax rates are currently at historical lows, tax rules require . For the money, this book is . To understand the complete definition of who the IRS considers a qualified . Exchange processes and rules. The Revenue Reconciliation Act of. Do it right, and there . An exchange is a deferral mechanism for tax . No gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment if such real property is . But for this to work, the owner whose property . This code allows exchanges of one . Hackett II Jack is Board . He guides you through the process, . Occurs when the like-kind or the replacement property close on the . Talk with your Xchange Solutions facilitator.

So, consider everything involved in the deal, and make sure you understand your tax. Rating: - ‎2reviews Understanding the differences between Opportunity Zones.

Ute Heidenreich, Esq. Deferring taxes on the sale of investment real estate or other assets is one such strategy. Guest Speaker: Paul Getty and Ian Bunje Covered . For additional information, contact Northland . Report like-kind exchanges when you exchange property for other property. Contact the experienced business attorney Larry E.