Home > Articles >

1031 Real Estate Exchange: the facts

By GORDON WILLIS, for 1031realestateexchanges.net 9/6/2007

Marginal wells provide as much as 25 percent of the nations' crude supply (on par with Saudi Arabia ) and about 10 percent of gas stocks. Let our knowledgeable team help YOU maximize YOUR investment properties wisely. Currently, the estate tax code provides that they will also receive a stepped-up tax basis to fair-market value, but you should check with your CPA or tax adviser because not all circumstances are alike. Each property provides the convenience of a single tenant NNN lease. Once the relinquished property is ready to close, the EAT enters into a simultaneous exchange with the Exchanger, transferring title to the replacement property to the Exchanger in exchange for causing the transfer of the relinquished property to a third party buyer.

When to choose a tenants in common

In 1991, the IRS announced that the like-kind exchange rules did not apply to reverse exchanges. Generally, if you exchange business or investment property solely for business or investment property of a like-kind, no gain or loss is recognized under Internal Revenue Code Section 1031. You will then have proof of receipt from a government agency. Because the buyer has paid in full, the buyer gets full title at time of closing. The 1031 exchange will help to make your property investments more profitable so start studying your 1031 exchange information as soon as you have secured your first investment property.1031 Exchange provides detailed information on 1031 exchange, 1031 exchange companies, 1031 exchange experts, 1031 exchange forms and more. The Exchanger then has 45 days to identify one or more relinquished properties. There are also different special rules regarding certain types of property: ejidos - communally held farm property - cannot be sold to anyone, but that does not prevent them from being offered for sale. Given the inevitability of a market correction in the near term, a potentially useful complement to the standard valuation process would be an assessment of the likelihood of a market correction.

Typical tenants in common rewards

The IRS states that exchanged properties must be 'like kind. Once the total expense is incurred and documented, the investor can subtract that amount from the adjusted gross income when determining their personal income taxes.Tax-deferred, like-kind exchange transactions between related parties are acceptable, provided certain requirements are met, including the required minimum holding period of two years for both properties/parties.The mortgages on most of the TIC properties offered by Spectrus Group are non-recourse.An owner of a detached house on 3 acres is transferred by his employer to another state.

Drawing your own conclusions

Tax-deferred like-kind exchanges are complex transactions that should only be entered into with the proper advice and guidance of your professional legal, tax, and financial advisors. The TIC debt structure generally allows for the debt financing to assumed. After these initial asymmetric bids, the parties usually met halfway. You generally have to pay taxes on the amount of net boot you receive. A triple net lease (Net-Net-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three 'Nets') on the property in addition to any normal fees that are expected under the agreement (rent, etc.).

About the author

Using individual data from Freddie Mac's portfolio of conventional mortgages, this paper estimates prepayment probabilities as a function of characteristics pertaining to the borrower, the loan, regional, and economic variables. The Qualified Intermediary (QI), required by law in a 1031 Exchange, plays an important role. You will then have proof of receipt from a government agency. This constructive receipt precludes the Investors ability to engage in a successful tax-deferred like-kind exchange transaction. By contrast, quarterly REIT returns do not display serial persistence. In such cases, if you owned and used the home as a principal residence for at least one of the five years preceding the sale, then you are treated as having used it as your principal residence while you are in a facility that is licensed to care for people in your condition.

Popular tags

Access to TIC properties Nationwide! FREE! Name (First Last)* Email * Phone * My role* ---select an item--- property owner investor/broker accommodator attorney/CPA real estate agent securities rep other Status* ---select one--- In 45 ID period Under contract Property listed Researching Equity* ---select one--- $10 million+ $5 to <$10 million $3 to <$5 million $1 to <$3 million $750,000 to $999k $500,000 to $749k $250,000 to $499k $100,000 to $249k less than $100k Tell us about your situation    * Indicates that these fields are required and must be filled in. your privacy assured