Individuals of any amount of wealth and business enterprises of any type and from any industry as long as they are tax paying entities can use a 1031 exchange ..read more

In a 1031 exchange, the third-party intermediary, or qualified intermediary (QI), fulfills documentation requirements and oversees that the sale proceeds are held until the exchange is complete and fully meets the guidelines required by the IRS. A qualified intermediary helps the property owner understand how a 1031 exchange works and interacts with the title company or closing attorney so that the closing statement reflects a 1031 exchange ..read more

As a property investor, it is very important that you explore different avenues to grow your portfolio. One thing that smart real estate investors commonly utilize is a 1031 tax-deferred exchange. This type of transaction allows you to sell a 1031 exchange investment property and use the proceeds for buying like-kind property of similar or greater value while deferring capital gains tax. It is ideal for purchasing higher-value investment properties that generate more return and offers a number of benefits. This article will highlight outstanding benefits of a 1031 tax-deferred exchange that wi ..read more

If you’re a real estate investor looking to maximize your capital gains for expanding your portfolio,a 1031 exchange is something you should definitely utilize. With the help of a 1031 exchange company, this type of real estate transaction enables you to trade up your investment properties by allowing you to use the entire proceeds from a property sale for financing other, potentially more valuable real estate investments. But before you can use a 1031 exchange, you should fully understand how it works and why it is so useful for real estate investors. This article will shed light on key featu ..read more

Section 1031 is a provision of the Internal Revenue Code that permits a taxpayer to exchange business-use or investment real property for other like-kind business or investment assets while deferring taxable gain on the sale of the old assets. The law has been in effect since 1921 ..read more

The term ‘like-kind’ property in a 1031 exchange has a looser definition than people typically think. ‘Like-kind’ property may be any real property for business-use or investment purpose that may be bought from the sale of a property of similar nature or character, even if they differ in grade or quality. The value of the properties have no significance in determining whether they are ‘like-kind’ but solely on whether they are for business or investment purposes ..read more

Using a 1031 like-kind exchange allows the owner of a business-use or investment property to have more capital from the sale of the said property for reinvestment on a like-kind property by getting the capital gains tax deferred. In other words, the owner can maximize the proceeds of a property sale for reinvestment on another property by accessing the amount which would otherwise be deducted as a capital gains tax in a normal transaction ..read more

Though a qualified intermediary handles the majority of functions and requirements involved in a 1031 exchange, it is not the closing agent. The closing agent should be selected by the property owner just as in any other transaction ..read more