1031 Exchange

A 1031 exchange, also known as a Starker Trust, is used by a real estate investor who wants to sell an investment property he or she owns but does not want to pay any taxes. A 1031 exchange allows the seller of investment property to defer taxes by purchasing another property that costs at least as much as the property he or she is selling. There are very strict rules for using 1031 exchanges, and if you blog the deadlines or rules, the 1031 will not be valid. Typically, you’ll need a third-party company to hold your 1031 funds (you’ll want to choose this company carefully) and a real estate attorney that you hire to protect your interests. This topic page is the nerve center for hundreds of articles and videos about 1031 exchanges. These articles discuss the nuances of selling property tax-free using a 1031 exchange. You can use the topic cloud on the right navigation to further refine your search.

1031 Exchange Requirements | Think Glink

Do you know the 1031 exchange requirements? It’s up to you to know the requirements of a 1031 exchange and have a back-up plan. Q: During the process of completing a 1031 exchange, my mortgage broker told us the day …

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1031 Exchange: Investment Property Tax Exchange Questions

A 1031 exchange is an investment property  exchange process that can assist in deferring taxes. We answer a question here. Q: I currently own two rental properties. The first house is paid off. The second property still has 14 years …

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Problems with Transferring Trust Property

Transferring trust property with a 1031 tax exchange must be done carefully, or the beneficiaries could lose their inheritance.  Q: My father recently passed away. He had a trust and in that trust he listed a property for me and my brothers …

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Selling a Rental home: What Are The Tax Implications?

When selling a rental home, understand the tax implications of selling the rental home and the 1031 exchange rules if you buy a new home. Q: I was wondering if you would be so kind and clarify something for me. …

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Tax Incentives and Deductions for Real Estate Investors

Tax incentives and tax deductions for real estate investors is suggested to be the cure to the housing market meltdown and the problems in the commercial real estate market.  Q: With the U.S. real estate market still at death’s door …

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Capital Gains Taxes On The Sale Of A Second Home

When you sell a Second Home, you may not get the tax advantages unless the home was an investment property and can defer capital gains. Q: We are considering selling a second home to find another one closer in proximity …

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1031 Exchanges For Real Estate Investment LLC

Q: Does doing a 1031 exchange inside an LLC come with any additional headaches? A: A 1031 exchange is term used to describe the sale and purchase of real estate that defers the payment of any federal income taxes. If …

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1031 Exchange Defers Capital Gains Taxes On Sale of Rental Property

1031 Exchange Defers Capital Gaines Taxes On Sale of Rental Property
1031 exchange defers capital gains taxes on sale of rental property. Real estate investors selling rental property, use a 1031 exchange to defer paying capital gains and other property taxes on the sale of a rental property. When selling a rental property calculate the net profit to see how much a real estate investor will owe in capital gains and property taxes. Use a 1031 exchange to defer capital gains taxes and other property taxes on the sale of a rental property.

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Capital Gains Tax On Sale Of Home Can Be Avoided by Using Seller Financing Or A 1031 Exchange

Use seller financing to save your capital gains tax exemption if your buyer is having trouble getting conventional financing. To qualify for a capital gains tax exemption you must fit under certain guidelines, like how long you have lived in the home as your primary residence. Seller financing can help you save your capital gains tax exemption before it expires. However, seller financing does carry many risks. If you can’t or don’t want to go down the route of seller financing, you can also consider a 1031 exchange (tax deferred exchange or Starker Trust) or an installment purchase. A qualified tax professional can help you determine if seller financing is the right choice for you, if you’re trying to save your capital gains tax exemption.

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Does Capital Gains Exclusion Apply To Trusts?

A homeowner wants to put his investment property into a trust to avoid capital gains taxes. To avoid capital gains taxes, you have to live in the for-sale property for two out of the past five years. A smarter way for this homeowner to avoid capital gains would be to use a 1031 exchange.

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