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Dec 20, 2023 · A 1031 exchange is a swap of one real estate investment property for another that allows capital gains taxes to be deferred. Learn the key terms, conditions, and steps of this tax break, as well as the limitations and traps for the unwary.
- Avoid Capital Gains
Under Section 1031, if you exchange business or investment...
- Principal Residence
Principal Residence: The primary location that a person...
- Avoid Capital Gains
Learn the guidelines and requirements for taxpayers who want to defer tax on the gain from selling business or investment property and reinvesting it in similar property under IRC Section 1031. Find out the types, time limits, and exceptions of like-kind exchanges, as well as the tax implications of cash, debt, and other property.
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Nov 29, 2023 · Learn how to defer capital gains tax on investment property sales with a 1031 exchange, also known as a like-kind exchange. Find out the requirements, steps and benefits of this tax-deferment strategy for real estate investors.
Feb 28, 2024 · Learn how a 1031 exchange can postpone capital gains tax on the sale of a business or investment property by using the proceeds to buy a similar property. Find out the qualifications, steps, deadlines and rules for this tax strategy.
- 1031 Exchanges Are Also Known as ‘Like-Kind’ Exchanges, and That Matters. Section 1031 of the IRC defines a 1031 exchange as when you exchange real property used for business or held as an investment solely for another business or investment property that is the same type or “like-kind.”
- Careful: You’re on the Clock! When contemplating a 1031 exchange, the race is indeed to the swift, or at least to the efficient: You have 45 days from the date of the original property’s sale to identify a new property to reinvest the proceeds.
- 1031 Exchanges Don’t Work to Downsize an Investment. The strict rules surrounding 1031 exchanges require the new investment property to be of equal or greater value than the property being sold.
- Transactions Can Be Structured in Four Different Ways. As needs vary depending on circumstances, real estate investors generally use five different kinds of 1031 exchanges
Learn about the rules and requirements for like-kind exchanges of real property under IRS Code Section 1031. Find out how the Tax Cuts and Jobs Act changed the eligibility of personal and intangible property for non-recognition of gain or loss.
