1031 Exchange Experts is the leader of companies with information on the rules, requirements and guidelines of investment real estate, which are 1031 properties by definition.
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| Bare Bones Basics of a 1031
exchange |
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James Schuler
for 1031 Exchange Experts, LLC |
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People
who have only heard of 1031 exchanges
know this much: it has something to do with
real estate. Basically, a 1031 exchange works
like this:
- first, you call a 1031 'qualified intermediary,'
(or 'Q.I.'). They start the exchange process
for you.
- work with a realtor to sell your old property
- at the closing, the money goes straight
from the closing to your QI. (I
explain why below)
- work with a realtor to buy a new property.
- when you finally close on your new property,
the QI sends your money to the closing.
In this way,
you buy and sell real estate without handling
any cash. Technically, in the eyes of the law,
you're actually TRADING properties with someone.
If you possess, hold or control the money at
any time between the sale of your old property
and the purchase of your new, it becomes taxable
to you. That's why when you sell your old property,
the money bypasses you and goes straight from
the closing to the QI. Later, it will go straight
from the QI to the closing of your new property.
Why
not just buy and sell outright?
Because when you sell something, yo.... |
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1031News
This Week |
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08/30/2010 |
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Gary Gorman
Founder, Managing Partner, 1031 Exchange
Experts, LLC |
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One
of the basic rules for holding title
to property in a 1031 exchange is: "how you
hold title to your old property is how you
have to take title to your new property." This
means that the title to the new property
has to be taken by the same tax return that
held title to the old property. For example,
if Sue owns her old property in her personal
name, she cannot have her corporation take
title to her new property: the tax return
that owns the old property (Sue's) is a different
entity from the tax return that will take
title to her new property (her corporation's).
This exchange will fail....
Read
the rest of, "Using 'Disregarded Entities'
in a 1031 Exchange" here....
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080410
TRANSPARENCY: With
1031 Exchange Experts you can see your
funds, online, 24/7. |
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This
Week's TEE-Shot |
08/24/2010 |
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In
the past several years there have been
several instances where Colorado 1031 intermediaries
either failed or were unable to return the
funds they held for their clients.
This had a double-catastrophic
impact on the victims because not only did
they lose their funds, but they also owed tax
on the sale.
The IRS has just released
a ruling that will help with some of their pain--they
can now spread the gain over any cash they recover
from the t....
...to
read the rest of "IRS Relief for 1031
Victims" subscribe to Tee-Shots |
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117051010 |
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