If I buy an investment property through 1031 exchange, what happens if I move in to the unit?
Q. I bought a rental property lthrough 1031 exchange last year in another town, but now want to move there to live. What are the tax implications? Will I have to pay the deferred capital gains taxes?
Asked by dummy - Thu Aug 17 16:21:38 2006 - - 2 Answers - 1 Comments
A. No tax due when you move in. But you will not get the 250,000/500,000 capital gain exemption when you sell it unless you live there for 5 years. This is longer than the normal 2 year rule for getting a home sale exemption from gains.
Answered by spicertax - Thu Aug 17 17:31:40 2006
Q. I bought a rental property lthrough 1031 exchange last year in another town, but now want to move there to live. What are the tax implications? Will I have to pay the deferred capital gains taxes?
Asked by dummy - Thu Aug 17 16:21:38 2006 - - 2 Answers - 1 Comments
A. No tax due when you move in. But you will not get the 250,000/500,000 capital gain exemption when you sell it unless you live there for 5 years. This is longer than the normal 2 year rule for getting a home sale exemption from gains.
Answered by spicertax - Thu Aug 17 17:31:40 2006
1031 exchange: is it the amount of the house or of the mortgage?
Q. I asked my tax accountant about the 1031 exchange but I don't feel confident that he really answered my question. We have a house that we accepted the bid for $443K we gave a credit of $13K for a net bid of $430. Our mortage is $250K. The amount that was given to the accomodate is $153K. Can we put in a bid for $410 and with all the fees both from escrow and to the agents end up having a mortgage of more than $250K. qualify for the 1031 exchange or do we need to bid $430K??? I understood from my accountant that as long as the mortgage is the same amount this is all the IRS cares about. Any advice?
Asked by RNsmiles - Wed Apr 11 22:47:06 2007 - - 3 Answers - 0 Comments
A. Maybe some of this might clarify things a bit: All the cash proceeds from the original sale must be reinvested in the replacement property - any cash proceeds that you retain will be taxable. The replacement property must be subject to an equal level or greater level of debt than the relinquished property or the buyer will either have to pay taxes on the amount of the decrease or have to put in additional cash funds to offset the lower level of debt in the replacement property. So this talks about two things: (1) any cash that you retain from the transaction is taxable, and (2) the amount of the debt, i.e. mortgages, on the new property must be equal to or greater than the debt on the old property or the difference is taxable. The… [cont.]
Answered by kokopelli - Wed Apr 11 23:01:07 2007
Q. I asked my tax accountant about the 1031 exchange but I don't feel confident that he really answered my question. We have a house that we accepted the bid for $443K we gave a credit of $13K for a net bid of $430. Our mortage is $250K. The amount that was given to the accomodate is $153K. Can we put in a bid for $410 and with all the fees both from escrow and to the agents end up having a mortgage of more than $250K. qualify for the 1031 exchange or do we need to bid $430K??? I understood from my accountant that as long as the mortgage is the same amount this is all the IRS cares about. Any advice?
Asked by RNsmiles - Wed Apr 11 22:47:06 2007 - - 3 Answers - 0 Comments
A. Maybe some of this might clarify things a bit: All the cash proceeds from the original sale must be reinvested in the replacement property - any cash proceeds that you retain will be taxable. The replacement property must be subject to an equal level or greater level of debt than the relinquished property or the buyer will either have to pay taxes on the amount of the decrease or have to put in additional cash funds to offset the lower level of debt in the replacement property. So this talks about two things: (1) any cash that you retain from the transaction is taxable, and (2) the amount of the debt, i.e. mortgages, on the new property must be equal to or greater than the debt on the old property or the difference is taxable. The… [cont.]
Answered by kokopelli - Wed Apr 11 23:01:07 2007
Can I use a 1031 Exchange to buy new property when selling commercial property?
Q. I own a building and I converted it from apartments to condos. I have sold four (of six) and I want to take the proceeds from the last sale or two and put it into a 1031 Exchange. I have not sold them yet. May I do this and buy a piece of land? Then I would use the land to build more condos. In the past I setup a 1031 Exchange for the sale of residential property to purchase this apartment building. In a like-kind exchange, the property being acquired must be similar in nature and character to the property being relinquished and must be located in the United States. The IRS is quite liberal in its interpretation of like-kind properties and views almost all real estate as similar in nature or character. Thus, virtually all real property… [cont.]
Asked by Stukish - Thu Aug 9 16:06:27 2007 - - 2 Answers - 0 Comments
A. My understanding is that the 1031 Exchange must be a "like kind" exchange. I think it has to be of similar type and equal or higher value. I don't think raw land would qualify. But, I'm not a 1031 Exchange expert...
Answered by bigoilman - Thu Aug 9 21:55:25 2007
Q. I own a building and I converted it from apartments to condos. I have sold four (of six) and I want to take the proceeds from the last sale or two and put it into a 1031 Exchange. I have not sold them yet. May I do this and buy a piece of land? Then I would use the land to build more condos. In the past I setup a 1031 Exchange for the sale of residential property to purchase this apartment building. In a like-kind exchange, the property being acquired must be similar in nature and character to the property being relinquished and must be located in the United States. The IRS is quite liberal in its interpretation of like-kind properties and views almost all real estate as similar in nature or character. Thus, virtually all real property… [cont.]
Asked by Stukish - Thu Aug 9 16:06:27 2007 - - 2 Answers - 0 Comments
A. My understanding is that the 1031 Exchange must be a "like kind" exchange. I think it has to be of similar type and equal or higher value. I don't think raw land would qualify. But, I'm not a 1031 Exchange expert...
Answered by bigoilman - Thu Aug 9 21:55:25 2007
Is anyone familiar with a 1031 exchange?
Q. I am interested in doing one, but I am looking for some testimonials about the 1031 exchange experience. Thank you in advance for your help.
Asked by mrshife - Thu Nov 15 18:03:01 2007 - - 2 Answers - 0 Comments
A. As a 1031 Accommodator with First American Exchange Company, one of the country's largest 1031 Accommodators, let me help answer your question. The 1031 Exchange is a rather simple process. It allows an investor to sell an investment property and purchase replacement investment property and you can defer the capital gain liability. Please understand that the 1031 Exchange is for Investment Properties only. The 1031 does not apply to Primary Residences. Per the 1031 Code, you must buy and sell "property held for productive use in a trade or business or for investment" (IRC section 1031(a)(1)). This means that you can buy and sell any type of property held for these purposes. Sell a commercial building and purchase raw land. Sell a rental… [cont.]
Answered by pro1031 - Fri Nov 16 00:23:02 2007
Q. I am interested in doing one, but I am looking for some testimonials about the 1031 exchange experience. Thank you in advance for your help.
Asked by mrshife - Thu Nov 15 18:03:01 2007 - - 2 Answers - 0 Comments
A. As a 1031 Accommodator with First American Exchange Company, one of the country's largest 1031 Accommodators, let me help answer your question. The 1031 Exchange is a rather simple process. It allows an investor to sell an investment property and purchase replacement investment property and you can defer the capital gain liability. Please understand that the 1031 Exchange is for Investment Properties only. The 1031 does not apply to Primary Residences. Per the 1031 Code, you must buy and sell "property held for productive use in a trade or business or for investment" (IRC section 1031(a)(1)). This means that you can buy and sell any type of property held for these purposes. Sell a commercial building and purchase raw land. Sell a rental… [cont.]
Answered by pro1031 - Fri Nov 16 00:23:02 2007
can i do a 1031 exchange from my second home?
Q. with the 1031 exchange I would like to buy a house for me to live in. Can this qualified for a 1031 exchange?
Asked by Josephine G - Thu Aug 31 14:36:45 2006 - - 2 Answers - 0 Comments
A. This is one of those funny areas of a 1031 exchange where you might be able to structure a 2nd home for exchange. 1031 exchanges are for investment properties... and not for primary use properties. Now you should be able to convert the property into a 'investment' property by taking on a tenant with a lease through the end of the year... that would be investment. Additionally, who is to say that this property wasn't held for appreciative value... It really depends on the side of gray that you want to be in... Here's my site: I'd try to ask an accomodator/title user what they would think about structuring this as an exchange, again it's how agressive you'd like to get. I'm launching the site this week, so you'll see more experts… [cont.]
Answered by starke222 - Mon Sep 4 14:22:51 2006
Q. with the 1031 exchange I would like to buy a house for me to live in. Can this qualified for a 1031 exchange?
Asked by Josephine G - Thu Aug 31 14:36:45 2006 - - 2 Answers - 0 Comments
A. This is one of those funny areas of a 1031 exchange where you might be able to structure a 2nd home for exchange. 1031 exchanges are for investment properties... and not for primary use properties. Now you should be able to convert the property into a 'investment' property by taking on a tenant with a lease through the end of the year... that would be investment. Additionally, who is to say that this property wasn't held for appreciative value... It really depends on the side of gray that you want to be in... Here's my site: I'd try to ask an accomodator/title user what they would think about structuring this as an exchange, again it's how agressive you'd like to get. I'm launching the site this week, so you'll see more experts… [cont.]
Answered by starke222 - Mon Sep 4 14:22:51 2006
Can you make a 1031 exchange FROM a rental to a RESIDENCE in California?
Q. I rented my residence for seven years because I was living out of the country. Now I must move to another city. Can I live in the building purchased by the 1031 exchange, or must I rent it out?
Asked by g g - Fri Feb 16 13:16:07 2007 - - 4 Answers - 0 Comments
A. A 1031 exchange must be for like-kind, with all of the money from the one you are selling going into the new like-kind property. So, no you can't exchange for a personal residence, but you can exchange for one that you intend to rent. So rent it for a while, and then change it to a personal residence. There is no real guideline on how long you have to hold it as a rental before changing it to your personal residence. Consult your tax person to be safe. Chrisusc is correct that it must be investment property; however a rental property is investment property even if it is just a single family residence that used to be your personal residence. So this would qualify for a 1031 if you buy another like-kind property.
Answered by Justcurious - Fri Feb 16 13:26:33 2007
Q. I rented my residence for seven years because I was living out of the country. Now I must move to another city. Can I live in the building purchased by the 1031 exchange, or must I rent it out?
Asked by g g - Fri Feb 16 13:16:07 2007 - - 4 Answers - 0 Comments
A. A 1031 exchange must be for like-kind, with all of the money from the one you are selling going into the new like-kind property. So, no you can't exchange for a personal residence, but you can exchange for one that you intend to rent. So rent it for a while, and then change it to a personal residence. There is no real guideline on how long you have to hold it as a rental before changing it to your personal residence. Consult your tax person to be safe. Chrisusc is correct that it must be investment property; however a rental property is investment property even if it is just a single family residence that used to be your personal residence. So this would qualify for a 1031 if you buy another like-kind property.
Answered by Justcurious - Fri Feb 16 13:26:33 2007
How to start a 1031 exchange company?
Q. I would like to form a company/business that facilitates real estate 1031 exchanges, in other words I want to become a company that is Qualified Intermediary. What are rules and regulations for forming such company/business? What are the qualifications required? I have no law degree, do I have to be an attorney? Thank you.
Asked by insurancelawcase - Mon May 14 01:20:32 2007 - - 1 Answers - 0 Comments
A. Try this:
Answered by Rabbit - Mon May 14 23:44:09 2007
Q. I would like to form a company/business that facilitates real estate 1031 exchanges, in other words I want to become a company that is Qualified Intermediary. What are rules and regulations for forming such company/business? What are the qualifications required? I have no law degree, do I have to be an attorney? Thank you.
Asked by insurancelawcase - Mon May 14 01:20:32 2007 - - 1 Answers - 0 Comments
A. Try this:
Answered by Rabbit - Mon May 14 23:44:09 2007
can you make some one sell their share of a property if you have yours in a 1031 exchange ?
Q. If you inheirit a real property from a probate avoidance trust can you make the other parties sale their parts if you have done a 1031 exchange with your share?
Asked by 2sweet2b4got@att.net - Tue Dec 11 10:53:40 2007 - - 1 Answers - 1 Comments
A. No. Just because YOU want to do something does NOT require that ALL others give up their rights in the property to make you happy. YOU are the one that committed to a 1031, that;s YOUR problem and not their's. Why didn't you ask this BEFORE doing the 1031? Why didn't you READ the terms of the trust because THAT is the LEGAL document that spells out HOW the property can and wil be divided. Why do so many people have a LEGAL document that controlls the situation but fail to read it and come on here asking people who having NOTHING to do with the situation solve it for them?
Answered by Jerrold J - Tue Dec 11 12:32:58 2007
Q. If you inheirit a real property from a probate avoidance trust can you make the other parties sale their parts if you have done a 1031 exchange with your share?
Asked by 2sweet2b4got@att.net - Tue Dec 11 10:53:40 2007 - - 1 Answers - 1 Comments
A. No. Just because YOU want to do something does NOT require that ALL others give up their rights in the property to make you happy. YOU are the one that committed to a 1031, that;s YOUR problem and not their's. Why didn't you ask this BEFORE doing the 1031? Why didn't you READ the terms of the trust because THAT is the LEGAL document that spells out HOW the property can and wil be divided. Why do so many people have a LEGAL document that controlls the situation but fail to read it and come on here asking people who having NOTHING to do with the situation solve it for them?
Answered by Jerrold J - Tue Dec 11 12:32:58 2007
If I build on my own lot, will I have to realize the deferred tax from depreciation from a 1031 Exchange?
Q. I 1031 Exchanged into my properties. And I want to build townhouses on them and sell them. Do I have to realize the defrred tax from depreciation? I want to tear down 2 triplexes on my lot and build some townhouses on top and then sell them. Do I have to realize the deferred tax from depreciation?
Asked by Johnny C - Thu Jun 14 14:42:54 2007 - - 2 Answers - 0 Comments
A. Are you talking about depreciation on bare land ? You can't depreciate bare land. If your accountant did, you might be in trouble. You can only depreciate improvements to the property. If you are talking about the 'deferred depreciation' rolled into the transaction from the exchange, you will have to recapture if you build a personal residence for yourself. If you build more investment property, then not.
Answered by acermill - Thu Jun 14 15:56:40 2007
Q. I 1031 Exchanged into my properties. And I want to build townhouses on them and sell them. Do I have to realize the defrred tax from depreciation? I want to tear down 2 triplexes on my lot and build some townhouses on top and then sell them. Do I have to realize the deferred tax from depreciation?
Asked by Johnny C - Thu Jun 14 14:42:54 2007 - - 2 Answers - 0 Comments
A. Are you talking about depreciation on bare land ? You can't depreciate bare land. If your accountant did, you might be in trouble. You can only depreciate improvements to the property. If you are talking about the 'deferred depreciation' rolled into the transaction from the exchange, you will have to recapture if you build a personal residence for yourself. If you build more investment property, then not.
Answered by acermill - Thu Jun 14 15:56:40 2007
Can an LLC or S-corp realestate investment co do 1031 Exchange?
Q. I have been buying realestates and have held the property under an S-corp or LLC. I am planning to sell and then do a 1031 exchange. Can LLC/S-corp do this? I have done it in the past as an individual person, but not sure if the IRS allows a corporation/LLC investment firm to keep on deferring the gains.
Asked by ibkid i - Thu Jul 5 01:05:58 2007 - - 2 Answers - 0 Comments
A. Yes, as long as ownership stays the same. ABC corp sells, ABC corp needs to purchase. Dissolving entities or changing ownership before selling or after purchasing should be looked at by a tax adviser. A single member llc is considered a "disregarded entity" by the IRS and is the exception. John Smith single member llc can sell and John Smith the individual can purchase. www.1031alternatives.net
Answered by Costa Financial - Fri Jul 6 13:25:03 2007
Q. I have been buying realestates and have held the property under an S-corp or LLC. I am planning to sell and then do a 1031 exchange. Can LLC/S-corp do this? I have done it in the past as an individual person, but not sure if the IRS allows a corporation/LLC investment firm to keep on deferring the gains.
Asked by ibkid i - Thu Jul 5 01:05:58 2007 - - 2 Answers - 0 Comments
A. Yes, as long as ownership stays the same. ABC corp sells, ABC corp needs to purchase. Dissolving entities or changing ownership before selling or after purchasing should be looked at by a tax adviser. A single member llc is considered a "disregarded entity" by the IRS and is the exception. John Smith single member llc can sell and John Smith the individual can purchase. www.1031alternatives.net
Answered by Costa Financial - Fri Jul 6 13:25:03 2007
Is there a 1031 Exchange in the Philippines?
Q. Is there a 1031 Exchange in the Philippines?
Asked by denxxchua - Sat Dec 9 06:54:54 2006 - - 1 Answers - 0 Comments
A. why not
Answered by quicksidemoney.blogspot.com - Sun Dec 10 11:31:49 2006
Q. Is there a 1031 Exchange in the Philippines?
Asked by denxxchua - Sat Dec 9 06:54:54 2006 - - 1 Answers - 0 Comments
A. why not
Answered by quicksidemoney.blogspot.com - Sun Dec 10 11:31:49 2006
How is a 1031 exchange of residential property accted & reported to the IRS? sale, deprec., and improvements?
Q. The original property was sold at a gain, but I was advised that all proceeds had to be rolled iinto the exchange-what happens to gain, basis, improvements etc.?
Asked by jrt - Tue Jan 9 15:31:32 2007 - - 3 Answers - 0 Comments
A. In a like kind exchange, no gain is currently recognized and your basis in the original property will roll over to the new property you received in exchange. However, if you received something else in addition to the new property (i.e. you gave up the house, but in return you received the new house AND cash), you will need to recognize gain to the extent of the "boot" (the asset received).
Answered by jseah114 - Tue Jan 9 16:38:01 2007
Q. The original property was sold at a gain, but I was advised that all proceeds had to be rolled iinto the exchange-what happens to gain, basis, improvements etc.?
Asked by jrt - Tue Jan 9 15:31:32 2007 - - 3 Answers - 0 Comments
A. In a like kind exchange, no gain is currently recognized and your basis in the original property will roll over to the new property you received in exchange. However, if you received something else in addition to the new property (i.e. you gave up the house, but in return you received the new house AND cash), you will need to recognize gain to the extent of the "boot" (the asset received).
Answered by jseah114 - Tue Jan 9 16:38:01 2007
What are the benefits of a 1031 exchange in the long run?
Q. I understand you need to hold the funds in an escrow account and you dont get taxed on it. But eventually if you want to take any funds out you're going to be taxed anyways right?
Asked by scivi92 - Tue Jun 20 15:12:39 2006 - - 5 Answers - 0 Comments
A. Although C Brent is essentially correct about 1031 exchanges... I don't think that he answers your question. A 1031 exchange is a tax deferred exchange. This means that when you remove your invested capital from real estate... it will be taxed at your capital gains rate (state, fed & recaptured depreciation). Here is a link to the capital gains calculator on my site: If on the short term side, you decide to take a little cash out (or portion) of your 1031 exchange proceeds, you will be taxed at your capital gains rate on the portion that you decide to not opt into the exchange. This is called Boot. (like putting cash in your boot). Here is a link to the dictionary on my site: When speaking about real estate capital gains, there… [cont.]
Answered by starke222 - Thu Jun 22 16:46:43 2006
Q. I understand you need to hold the funds in an escrow account and you dont get taxed on it. But eventually if you want to take any funds out you're going to be taxed anyways right?
Asked by scivi92 - Tue Jun 20 15:12:39 2006 - - 5 Answers - 0 Comments
A. Although C Brent is essentially correct about 1031 exchanges... I don't think that he answers your question. A 1031 exchange is a tax deferred exchange. This means that when you remove your invested capital from real estate... it will be taxed at your capital gains rate (state, fed & recaptured depreciation). Here is a link to the capital gains calculator on my site: If on the short term side, you decide to take a little cash out (or portion) of your 1031 exchange proceeds, you will be taxed at your capital gains rate on the portion that you decide to not opt into the exchange. This is called Boot. (like putting cash in your boot). Here is a link to the dictionary on my site: When speaking about real estate capital gains, there… [cont.]
Answered by starke222 - Thu Jun 22 16:46:43 2006
can i use a 1031 exchange for flipping houses?
Q. how long do i have to hold onto the property to use a 1031? what requirements are there to use a 1031?
Asked by macmo187 - Sun Dec 9 13:25:43 2007 - - 3 Answers - 0 Comments
A. My understanding is no. "Qualifying Property - Certain types of property are specifically excluded from Section 1031 treatment: property held primarily for sale; inventories; stocks, bonds or notes; other securities or evidences of indebtedness; interests in a partnership; certificates of trusts or beneficial interest; and choses in action. In general, if property is not specifically excluded, it can qualify for tax-deferred treatment. Proper Purpose - Both the relinquished property and replacement property must be held for productive use in a trade or business or for investment. Property acquired for immediate resale will not qualify. The taxpayer's personal residence will not qualify. " Another requirement for a 1031 is a proper… [cont.]
Answered by heyteach - Sun Dec 9 13:41:12 2007
Q. how long do i have to hold onto the property to use a 1031? what requirements are there to use a 1031?
Asked by macmo187 - Sun Dec 9 13:25:43 2007 - - 3 Answers - 0 Comments
A. My understanding is no. "Qualifying Property - Certain types of property are specifically excluded from Section 1031 treatment: property held primarily for sale; inventories; stocks, bonds or notes; other securities or evidences of indebtedness; interests in a partnership; certificates of trusts or beneficial interest; and choses in action. In general, if property is not specifically excluded, it can qualify for tax-deferred treatment. Proper Purpose - Both the relinquished property and replacement property must be held for productive use in a trade or business or for investment. Property acquired for immediate resale will not qualify. The taxpayer's personal residence will not qualify. " Another requirement for a 1031 is a proper… [cont.]
Answered by heyteach - Sun Dec 9 13:41:12 2007
In real estate, can I exchange two houses for one house in a 1031 exchange to avoid capital gains any way?
Q. I have 2 homes. One I live in, the other I rent out. I am retiring, and I would like to sell both the rental and my home to buy another home. Is there a way to do this to avoid capital gains?
Asked by wafer122 - Mon Oct 6 23:29:53 2008 - - 4 Answers - 0 Comments
A. I'm no CPA, but I don't believe you can involve a personal residence in any type of 1031 exchange situation. The good news, as you probably already know, is that you can take up to $250k in gains (or $500k if married) tax free on the sale of a personal residence. Now, if both properties were rentals, you could definitely exchange both for another home in a 1031 exchange. You could rent the exchanged property for awhile, move in if you wanted, and convert it to a personal residence. However, I believe there has been some very recent IRS code changes that may have negated or minimized the benefits of using this type of scenario to limit or negate capital gains exposure. It's more than worth it, though, to find a good CPA who is… [cont.]
Answered by AllCourt - Tue Oct 7 00:03:19 2008
Q. I have 2 homes. One I live in, the other I rent out. I am retiring, and I would like to sell both the rental and my home to buy another home. Is there a way to do this to avoid capital gains?
Asked by wafer122 - Mon Oct 6 23:29:53 2008 - - 4 Answers - 0 Comments
A. I'm no CPA, but I don't believe you can involve a personal residence in any type of 1031 exchange situation. The good news, as you probably already know, is that you can take up to $250k in gains (or $500k if married) tax free on the sale of a personal residence. Now, if both properties were rentals, you could definitely exchange both for another home in a 1031 exchange. You could rent the exchanged property for awhile, move in if you wanted, and convert it to a personal residence. However, I believe there has been some very recent IRS code changes that may have negated or minimized the benefits of using this type of scenario to limit or negate capital gains exposure. It's more than worth it, though, to find a good CPA who is… [cont.]
Answered by AllCourt - Tue Oct 7 00:03:19 2008
Does the IRS mandate that a paid Qualified Intermediary handle a 1031 exchange? Or can I do it myself?
Q. I've done some reading and understand that I can't have any contact with the monies and documents, nor can anyone related to me or doing business with me. (This feels like an UNpopularity contest.) So can it be done without paying someone? How? Please don't say it's too complicated! I enjoy this stuff and probably should have been a CPA.
Asked by LongHall - Mon Jun 26 10:46:11 2006 - - 4 Answers - 0 Comments
A. Yes, the IRS mandates that a unrelated 3rd party be your 1031 exchange accomodator/intermediary. this is not something that you want to have a buddy do for free!!! Appreciate that I'm trying to shout for effect, cause you would no sooner try to get heart surgery from the guy down the street to save a buck. The exchange process is not that complicated, nor that expensive. But there are a few things that must be done the right way. I've heard of 2 main horror stories, you can guess the first... yup, someone screws up and you owe capital gains tax... the second reason is that this 3rd party has possession of your funds. In the early days of the 1031 exchange, before people were bonded & insured (things you want to make sure they are)… [cont.]
Answered by starke222 - Mon Jun 26 23:32:59 2006
Q. I've done some reading and understand that I can't have any contact with the monies and documents, nor can anyone related to me or doing business with me. (This feels like an UNpopularity contest.) So can it be done without paying someone? How? Please don't say it's too complicated! I enjoy this stuff and probably should have been a CPA.
Asked by LongHall - Mon Jun 26 10:46:11 2006 - - 4 Answers - 0 Comments
A. Yes, the IRS mandates that a unrelated 3rd party be your 1031 exchange accomodator/intermediary. this is not something that you want to have a buddy do for free!!! Appreciate that I'm trying to shout for effect, cause you would no sooner try to get heart surgery from the guy down the street to save a buck. The exchange process is not that complicated, nor that expensive. But there are a few things that must be done the right way. I've heard of 2 main horror stories, you can guess the first... yup, someone screws up and you owe capital gains tax... the second reason is that this 3rd party has possession of your funds. In the early days of the 1031 exchange, before people were bonded & insured (things you want to make sure they are)… [cont.]
Answered by starke222 - Mon Jun 26 23:32:59 2006
I have a question about a 1031 Exchange and if my situation will work for a 1031.?
Q. I moved from Los Angeles to Phoenix in July sort of sight unseen, I am now paying the price with a 40 minute commute in each direction. I have to be in my house for at least a year due to home builder s regulations but want to move soon after. At this point I really do not care about equity gains and just want to make my money back that I put down as a down payment. If this is my primary residence can I sell it and buy a new home under 1031 exchange? If I use the new house as my primary residence can I defer the capital gains taxes and when will I have to pay them.
Asked by ramos00 - Wed Nov 8 12:36:26 2006 - - 4 Answers - 0 Comments
A. You only pay capital gains on PROFIT, not gross proceeds. If you come out at 0, you dont have to worry about capital gains. I bought house for $152, sold it at $167, and only paid capital gains on about $5K becuase that was all the profit I made on the deal. As long as you keep your paperwork to show that the cash you're getting back is your down payment and not profit (hang onto your original closing statement) then the 1031 exchange is a moot point.
Answered by Amanda H - Wed Nov 8 12:46:17 2006
Q. I moved from Los Angeles to Phoenix in July sort of sight unseen, I am now paying the price with a 40 minute commute in each direction. I have to be in my house for at least a year due to home builder s regulations but want to move soon after. At this point I really do not care about equity gains and just want to make my money back that I put down as a down payment. If this is my primary residence can I sell it and buy a new home under 1031 exchange? If I use the new house as my primary residence can I defer the capital gains taxes and when will I have to pay them.
Asked by ramos00 - Wed Nov 8 12:36:26 2006 - - 4 Answers - 0 Comments
A. You only pay capital gains on PROFIT, not gross proceeds. If you come out at 0, you dont have to worry about capital gains. I bought house for $152, sold it at $167, and only paid capital gains on about $5K becuase that was all the profit I made on the deal. As long as you keep your paperwork to show that the cash you're getting back is your down payment and not profit (hang onto your original closing statement) then the 1031 exchange is a moot point.
Answered by Amanda H - Wed Nov 8 12:46:17 2006
If I buy a property on a 1031 exchange, can I sell it in one year?
Q. In addition, during this year, I will have my son paying me monthly payments (principal & interest). At the end of this year, I will sell the property to my son at the new market value. Will my son be able to write-off the interest that he pays for the first 12 months on his taxes?
Asked by house hunter - Fri Apr 6 21:39:15 2007 - - 1 Answers - 0 Comments
A. Why don't you get an accountant?
Answered by sunshine_today - Fri Apr 6 22:27:47 2007
Q. In addition, during this year, I will have my son paying me monthly payments (principal & interest). At the end of this year, I will sell the property to my son at the new market value. Will my son be able to write-off the interest that he pays for the first 12 months on his taxes?
Asked by house hunter - Fri Apr 6 21:39:15 2007 - - 1 Answers - 0 Comments
A. Why don't you get an accountant?
Answered by sunshine_today - Fri Apr 6 22:27:47 2007
Does anyone know about the advantages of using a 1031 exchange to sell a house versus using an investor?
Q. Does anyone know about the advantages of using a 1031 exchange to sell a house versus using an investor?
Asked by scsunshine - Thu May 4 13:15:30 2006 - - 2 Answers - 0 Comments
A. A 1031 postpones capital gains tax until the new property is sold. This allows you to invest more in the new property since you will not incur taxes when you sell the old.
Answered by Norm - Thu May 4 13:20:06 2006
Q. Does anyone know about the advantages of using a 1031 exchange to sell a house versus using an investor?
Asked by scsunshine - Thu May 4 13:15:30 2006 - - 2 Answers - 0 Comments
A. A 1031 postpones capital gains tax until the new property is sold. This allows you to invest more in the new property since you will not incur taxes when you sell the old.
Answered by Norm - Thu May 4 13:20:06 2006
I understand that it's possible to sell commercial real estate and do a 1031 Exchange investing into a REIT?
Q. What are the steps you need to undertake to effectuate such a transaction? Is this any different than any other "like-kind" exchange? Or am I misinformed about the ability to do such an exchange? Any guidance or referrals to websites would be appreciated.
Asked by doousle - Tue Aug 8 00:58:13 2006 - - 3 Answers - 0 Comments
A. Check out the site I included in the resource box and see whether it would help you. It has info on commercial real estate that might be related to your question on 1031 exchange. Good luck
Answered by ebizoutlook - Wed Aug 9 01:07:51 2006
Q. What are the steps you need to undertake to effectuate such a transaction? Is this any different than any other "like-kind" exchange? Or am I misinformed about the ability to do such an exchange? Any guidance or referrals to websites would be appreciated.
Asked by doousle - Tue Aug 8 00:58:13 2006 - - 3 Answers - 0 Comments
A. Check out the site I included in the resource box and see whether it would help you. It has info on commercial real estate that might be related to your question on 1031 exchange. Good luck
Answered by ebizoutlook - Wed Aug 9 01:07:51 2006
From Yahoo Answer Search: '1031 exchange'
Sun Jul 5 15:13:54 2009 [ refresh local cache ]
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1888 Press Release (press release)
The newly created Zero Equity 1031 Exchange offers real estate investors the unique opportunity to continue to defer the payment of their depreciation ...
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Fri, 26 Jun 2009 19:17:59 GM
One of the best tools for any real estate investor, then, is the . 1031 exchange. . . 1031. tax exchanges were designed by the IRS to allow real estate investors to defer payment of capital gains taxes while they are actively involved in the ...
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