1031 Exchange Learning Center
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1031 Exchange Learning Center
- What is a 1031 Real Estate Exchange?
Named after Internal Revenue Code Section 1031, a 1031 Exchange allows you to defer taxes on the profit you make when you sell investment real estate. The IRS requires you to comply with a few requirements, however.
Read Article >> - 1031 Exchanges and the Capital Gains Tax Rule
A 1031 exchange and the Capital Gain tax rule is not a tax loophole. It is a section of the Internal Revenue Code, written by Congress, to allow anyone who meets all the requirements to sell their property and defer paying taxes on the gain.
Read Article >> - 1031 Exchanges: Fix and Flip Properties
The good news: your buddy tells you about a 1031 exchange and how you can roll the gain from this property into your next one. Now, the bad news? You may not qualify for a 1031 exchange unless you structure the transaction correctly.
Read Article >> - Holding Period Problems and 1031 Exchanges
One of the most common questions I hear deals with the holding period requirements for 1031 exchanges. First the background: a 1031 exchange rolls the gain from the sale of your old investment property to the purchase of your new investment property.
Read Article >> - Consolidation and Diversification of Investments through 1031 Exchanges
Section 1031 allows a real estate investor to defer capital gains taxes due on an otherwise taxable sale of appreciated real estate when that investment property is replaced with a "like-kind" investment property.
Read Article >> - 1031 Exchange Series: Combining Sections 121 and 1031 to Avoid Capital Gains Tax
Under Section 121 of the IRC, you can exclude up to $500,000 in gain for married couples ($250,000 in gain for singles) on the sale of a principal residence, as long as it has been occupied as a principal residence for 2 out of the last 5 years.
Read Article >> - Know the Difference Between Section 1034 and 1031: Defer Taxes on Investment Property Profits
Many taxpayers think 1031 Exchanges are complicated because the rules are different from what they are accustomed to seeing in Section 1034, which deals with personal residences. There really is a simple logic to Section 1031 Exchanges as well.
Read Article >> - 1031 Exchange Series: Improvement and Construction Exchanges
An improvement exchange allows you to buy a fixer-upper with part of the exchange proceeds from the sale of the old property and then use the rest of the exchange proceeds to make improvements.
Read Article >> - IRS Tightens Related Party Rules for 1031 Exchanges
A recent IRS Ruling will now reduce taxpayer flexibility when they complete a 1031 exchange by buying property from a relative. There are 2 types of exchanges involving relatives: simultaneous and deferred.
Read Article >> - Exchanging Foreign Properties Under Code Section 1031
Section 1031 specifically provides that real property located in the United States is not "like-kind" to real property located outside of the United States. Section 7701 goes on to define the borders of the United States to being all fifty states and the District of Columbia.
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