A 1031 exchange is a great tool for investors who want to avoid paying tax on the gain from the sale of real estate; however, in order to completely defer the tax, an investor must: Find one or more “like-kind” replacement properties with a total fair market value that equals or exceeds what is being … Read more
Many of our area’s real estate investors have heard of the 1031 exchange, a technique where property held for investment is exchanged for “like kind” property thereby deferring capitol gains taxes until a later tax year. While investors like being able to defer taxes until a later year, many complain that they’d like a way … Read more
If you decide to relocate to Florida, you’ll have property taxes just as in any other state. The good news is that Florida property taxes are very reasonable. The median home value in Florida is 9,500. The average property tax is ,495, which means Florida has the 22nd highest average tax amount in a comparison … Read more
When entering into a 1031 exchange one often does not consider the ancillary costs that come with closing the transaction. Often the assumption is made that these costs will be subsidized by the 1031 exchange proceeds. However, while some of these costs certainly can be bankrolled by the tax deferred exchange, some cannot. Knowing how … Read more
In spite of decreasing real estate values across the nation, real estate investors continue to come up with innovative ways to make their investment turn out profitably. A powerful method for building real estate holdings is the use of 1031 Exchanges, which lets investors defer capital-gains assessment on investment property by reinvesting sale proceeds into … Read more