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| The Terramar Team ___________________________ (239) 498-6885 Al@AlBailleres.com |
| Al Baillères (“Bailler”) Consultant |
Section 1031 of the U.S. Internal Revenue Code allows investors
to defer capital gains taxes on the exchange of like-kind properties.
1031 (tax-deferred) exchanges hold great advantages for investors.
1 Real Property Use
Both, your old and new property must qualify as investment or business use.
If both properties pass this test, you can exchange nearly any type of real estate.
2 45 Days Identification Period
You have 45 days from the closing of your sale to list the properties you may
want to buy. There are no exceptions to this deadline.
3 180 Days Exchange Period
From the sale closing date, you have 180 days to close on the purchase of
one or more properties from the 45-day identification list. There are no
exceptions to this deadline.
4 Qualified Intermediary
The IRS mandates that you use a Qualified Intermediary to provide your
exchange. Because the Qualified Intermediary must be independent, it cannot
be your friend, employee, accountant, broker or attorney. The Qualified
Intermediary holds your money, so that you do not have access to it.
5 Proper Title Holding
You must purchase and take title to your new property exactly as you held title
to your old property.
6 Reinvestment Requirement
To defer all of your capital gain tax, you must buy a property equal or higher
in value than the one you sold. Also, you must reinvest all of the cash
proceeds from your sale.
Read more... (eligibility guidelines)
Note: This is neither legal nor tax advice. Please consult your tax attorney or
CPA to discuss your individual case. Investors should conduct their own
independent investigations and rely only on those results.
to defer capital gains taxes on the exchange of like-kind properties.
1031 (tax-deferred) exchanges hold great advantages for investors.
1 Real Property Use
Both, your old and new property must qualify as investment or business use.
If both properties pass this test, you can exchange nearly any type of real estate.
2 45 Days Identification Period
You have 45 days from the closing of your sale to list the properties you may
want to buy. There are no exceptions to this deadline.
3 180 Days Exchange Period
From the sale closing date, you have 180 days to close on the purchase of
one or more properties from the 45-day identification list. There are no
exceptions to this deadline.
4 Qualified Intermediary
The IRS mandates that you use a Qualified Intermediary to provide your
exchange. Because the Qualified Intermediary must be independent, it cannot
be your friend, employee, accountant, broker or attorney. The Qualified
Intermediary holds your money, so that you do not have access to it.
5 Proper Title Holding
You must purchase and take title to your new property exactly as you held title
to your old property.
6 Reinvestment Requirement
To defer all of your capital gain tax, you must buy a property equal or higher
in value than the one you sold. Also, you must reinvest all of the cash
proceeds from your sale.
Read more... (eligibility guidelines)
Note: This is neither legal nor tax advice. Please consult your tax attorney or
CPA to discuss your individual case. Investors should conduct their own
independent investigations and rely only on those results.
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| Rules, Forms, & Guidelines from the IRS Form 8824: Like-Kind Exchanges Publication 544: Sales and Other Disposition of Assets Frequently Asked Questions Real Estate Tax Tips Rev. Proc. 2002-22: Undivided fractional interests in real estate - Scroll to page 733. Internal Revenue Code, Part 1: Income Taxes - Scroll down to access section 1.1031 et seq. |
WE BUY NOTES*! If you have a real estate note to sell we want to hear from you. Please e-mail us at Al@AlBailleres.com to request a submission worksheet for you to complete. Once received, we will review and respond quickly. *We buy first, second or third position performing or non-performing notes. |
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