Converting 1031 Exchange Property Into Primary Residence
When using a 1031 exchange to convert investment property into a primary residence, a homeowner must wait at least three years. Before converting from an investment property to a primary residence, make sure you understand the IRS rules to shield capital gains tax.
Real Estate Agent Is Not Tax Advisor
When you sell a rental property you'll owe capital gains tax on the sale, even if you buy a primary residence in the same year. One alternative to reduce your tax burden is to do a 1031 tax free exchange, but that means you have to buy a second rental property. A 1031 exchange may not be used for a…
Options For Selling Inherited Property
Inherited property can involve many different tax implications. If you sell for the amount the estate valued it at, you might not ow any taxes. If the property has appreciated, you will have to pay capital gains tax -- unless you used it as a primary residence. With investment property, you may be…
Buying A Second Home With 1031 Exchange
A 1031 exchange cannot be used to purchase a personal residence. A 1031 exchange is used when selling investment property by replacing with another investment property that costs at least as much as the sold property. A 1031 exchange could be used to purchase an investment home that is rented out…
1031 Exchange: Defer Capital Gains Tax On Investment Property
The only way to defer paying capital gains taxes is to use the 1031 exchange and purchase new investment property using the proceeds of the sale of the old property. You cannot avoid paying taxes on your profits, unless you are using a 1031 tax free exchange. A tax-free exchange would allow you to…
A 1031 tax free exchange requires that you purchase a replacement home for at least the price of the one you sold. A 1031 exchange is a provision in the tax code that allows you to defer the payment of taxes on the sale of an investment property, but you have to set up the exchange prior to the sale…
A 1031 exchange allows you to defer taxes when selling a home by purchasing another one within a certain time period. Unfortunately, 1031 exchange laws do not allow for purchases outside the U.S. Current 1031 exchange rules require you to have designated a replacement property within 45 days of…
Investing In Real Estate With Siblings
Can a 1031 exchange be used when selling and buying new property with siblings? Hiring a real estate attorney is a good idea when buying a home with siblings. Here are the best steps to take when using a 1031 exchange and buying real estate with siblings.
Hey, Folks. I'm back from London. And, a little late in posting for the show this morning. But, here's a look at what talked about today:
I talked about how the BEST deal you can get on your money when traveling abroad is from an ATM machine. In London last week, I used an ATM machine, and got a…
ThinkGlink Radio Show for Jul 8, 2006
In her July 8 show, Ilyce discusses her recent trip to London with her son, Alex, and how she saved money by getting cash from an ATM. She also has great tips for saving on back-to-school supplies for your kids. This was a great show if you're interested in real estate. She covered everything from…
A 1031 exchange 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. To avoid the payment of taxes, he or she sets up a 1031 exchange with one of the many companies that provides this service. In essence, the 1031 exchange…
With an estimated 15 million Americans owning investment property, more people are using 1031 tax-free exchanges in order to defer capital gains. A 1031 exchange is a provision in the Internal Revenue Code that permits an owner of investment property to sell the property and buy a new property…
1031 Exchange: Use When Dividing Property
A property owner who inherited a 160-acre ranch has the opportunity to sell the property at considerable gain and wants to know if a 1031 exchange can be used. A 1031 exchange can be used by real estate investors when selling one investment property to buy another and defer federal taxes on the…
Avoiding Taxes When Selling Real Estate Investment
Many people have gotten into the real estate investment business with the recent housing explosion. When it comes time to sell real estate investments, capital gains tax concerns are important. Consider using a 1031 exchange, which defers federal income taxes, when selling investment property.
ThinkGlink Radio Show for Dec 11, 2005
Ilyce starts the show by talking about gifting for Christmas and what to do with an old car. Ilyce then takes calls on topics from 1031 exchanges on land to IRS rules on Katrina losses.
Converting 1031 Exchange To Primary Residence
Real estate investors often use a 1031 exchange to sell one investment property and purchase another so that they may defer federal income taxes. If, after purchasing the rental or investment property, you decide to convert it into a primary residence after using a 1031 exchange, you must wait two…
New IRS Rule For 1031 Exchange
Some real estate investors use a 1031 exchange to purchase a residence and defer federal income taxes, but the IRS rules for this type of transaction can be tricky. The IRS recently changed the 1031 law to include a 5 year ownership requirement. When using a 1031 exchange, plan ahead and consult a…
1031 Reverse Exchange May Be Better Option Than 1031 Exchange
In a 1031 exchange, a real estate investor purchases a similar investment property to replace another property, and is able to defer any federal income taxes owed. But the IRS has strict timelines for 1031 exchanges and sometimes a 1031 reverse exchange may be a better option though it could be more…
Selling Rental Properties Tax Free
Want to sell rental properties tax free? A 1031 tax-free exchange is the best option for rental property. There are other ways to sell rental properties tax free, but 1031 exchanges represent the most viable method.
1031 Tax-Free Exchange May Help Delay Capital Gains
When you rent out rooms in your home, you're not only living in your primary residence but you're also conducting business. When you're renting out rooms and later decide to sell what taxes do you have to pay? You may owe taxes on the depreciation you claimed and capital gains tax on the investment…
Paying Taxes On The Sale Of Commercial Land
When selling commercial land and you might be making a large amount of money in capital gains. To defer the payment of taxes on the sale of commercial property, there are two types of tax free exchange mechanisms that you can use. Both involve Section 1031 of the Internal Revenue Code and they are…
Selling A Long Term Investment Property
What is the tax burden will be when selling an investment property? If you plan to invest in another investment property, you may be able to use a 1031 exchange and defer taxes owed. If the owner has taken depreciation on the investment property, they will need to "recapture" the depreciation.
Use 1031 Exchange To Avoid Capital Gains Tax
Just calling a home your sold home your primary residence doesn't mean you'll avoid capital gains taxes. Using a 1031 exchange when selling a home and buying a new one can help defer capital gains taxes. With a 1031 exchange, you can swap investment property for another income-producing property…
Taxes On Sale Of Rental Property and Primary Residence
A couple bought a home on a 2-acre lot. They lived in it while they built a second home, and then moved into the second home after it was completed. They now rent out the original home to another couple. If they sell the property and both homes, how will the transaction be treated at tax time?
Selling Rental And Primary Residences
A reader comments on Ilyce's initial article about selling primary and rental properties.
