A reverse exchange is similar to a standard exchange (sell first, buy later), but reverses the process, so that the exchanger purchases a property first, the title is held by the qualified intermediary, and a currently held property is relinquished within 180 days, with the funds being applied tax-free to the newly acquired property.
Depreciation recapture is a process then enables the IRS to collect taxes on the financial gain you have made from the sale of an asset. Exactly what depreciation recapture rate will apply will depend on your individual circumstances.
A 1031 exchange is a tax incentive that enables the owner of investment property to sell it and acquire a like-kind property whilst deferring capital gains tax.
A 1031 exchange is a tax incentive that enables the owner of investment property to sell it and acquire a like-kind property whilst deferring capital gains tax.
It is best to file a 1031 Exchange as soon as possible. If you decide to sell your business or investment property without entering into a 1031 exchange, you will be liable to pay capital gains tax on any profit you have made on it.
In this blog, we review the different ways investors can structure a 1031 Exchange in order to benefit the profitability of their real estate acquisition.
When you choose a 1031 exchange, you can use the money that you would have otherwise paid to the IRS in taxes to put towards your like-kind property.
If you are considering a 1031 exchange, the very best thing that you can do to avoid the risks associated with the process is to hire a professional.
he California State Board of Equalization (BOE) has overruled the FTB’s disallowance of like-kind exchange treatment under Section 1031, making the Exchange Advantage accessible to residents of all 50 states.
The 1031 Exchange is a great way for businesses and investors to take advantage of the additional value of their real estate and put it into their next purchase
NMLS #2149727 | DRE 02144466 | NMLS consumer access | Equal Housing Opportunity
Plenti Financial™ is a trade name of 1031 Exchange Advantage®. 1031 Exchange Advantage™ is a trade name of 1031 EA, LLC and is not a licensed broker. 1031 EA, LLC is a division of Plenti Financial and is the accommodator for a 1031 Exchange as required by the IRS. 1031 EA, LLC does not provide, brokerage, legal or accounting services and is simply a Qualified Intermediary under the IRS code. It therefore is not providing any services other than accommodation services and clients and prospects are advised to confirm all tax, legal, accounting and real estate investment decisions with their professionals such as their accountant or attorney.
A 1031 exchange is a method of tax deferral upon the sale of investment real estate. However, the decision to pay or not pay accumulated and/or deferred taxes is up to the taxpayer, who has control over whether transactions are completed tax-deferred, or tax-free! If an exchanger should decide to continue exchanging into investment property of same or greater value for life, and never sell investment property without utilizing a 1031 exchange, no taxes would be due on any transactions, making them tax-free! Even in the event the taxpayer dies, the taxes die with him, again making the transactions tax-free! Because the choice is up to the taxpayer, we like to say taxes in an exchange are deferred, unless you choose to sell tax-free with Plenti Financial!
