Do you have a second home or vacation home that you are thinking of selling? Did you know that you may be able to defer 100% of your capital gains tax from the sale of the property?
Use your tools! The message that this article hopes to convey to active real estate investors is that reflexively relying on deferred 1031 exchanges to accomplish important objectives may not be the best use of well-understood tools that are available and dependable.
When an investor sells real estate, that is held for business or investment purpose and has appreciated in value, they will most likely incur a capital gain. The profit on the sale of this property is usually taxed at both the federal and state levels.
The IRS provides tax benefits for the sale of real estate classified as either your primary residence (IRC 121) or investment property (IRC 1031). But what about vacation homes?
It is never too early to prepare for a 1031 exchange. There are many options that should be considered when planning for an exchange. Advance planning can help the process go smoother and provide better results for the exchanger.
Sometimes a New England investment property owner may want to sell an investment property and buy another investment property, but the replacement property they seek to purchase is worth less than the property they are selling.
Internal Revenue Code (IRC) Section 1031 allows a property owner, who holds property for “the productive use in a trade or business or for investment,” to defer paying any capital gains taxes if the property owner sells such property, identifies “like kind” property within forty-five days of the sale, and acquires other “like kind” property within 180 days of the sale.
The volume of 1031 Exchange transactions continue to rise year after year, but what’s also been trending is the sharp increase in the need for Reverse Exchanges. With limited available inventory and market aggressiveness, and for those who strategically want to secure the ideal replacement property prior to relinquished property closing,
In the good old days, the two sure things were said to be death and taxes. In today’s world, should we be adding the inevitability of cybercrime? To help answer that question, let’s look some numbers: The estimated annual cost of cybercrime is $400,000,000,000. Yes, that is billions.
Statistically they say that most businesses fail before their 5th year. Very few business last 10 years. We must be an anomaly.
