If for some reason the investor is unable to sell the relinquished property within the strict 180 day deadline, the EAT will transfer title of the new property to the investor. The investor will end up owning both the replacement property and the relinquished property which was not sold. A failed reverse exchange will not … Read more
An important fact in regard to the 1031 process is that you CANNOT use your 1031 proceeds to fund improvements on land you own already. This is a common stumbling block of inexperienced investors. In order to qualify for a capital gains tax deferral, the replacement property must be of LIKE KIND with the relinquished … Read more
For investors interested in real estate, there may be no better and worthwhile tool than the 1031 exchange. In short, it is a process through which capital gains tax liability can be completely deferred. Enabling otherwise lost funds to be used for investment. It can be, however, a complex process, requiring due diligence … Read more
A 1031 exchange or Like kind exchange is defined by section 1031 of the Internal Revenue Code or the IRC. According to IRC if an asset, most often some form of real estate such as land or building is sold and the proceeds of the sale are re-invested in a similar asset then there is … Read more
Also called a Starker Exchange Trust, a 1031 exchange is generally used by someone who wants to sell an investment property that they own, yet do not want to pay any taxes. A 1031 will allow the seller of the investment property to defer the taxes as long as they purchase another property which costs … Read more