If you're thinking about doing a 1031 exchange, or you have an investment property that you are thinking about selling, now is a good time to learn more about how you can get benefit from the property in 1031.
First, it is important to be familiar with what the 1031 actual exchange. When you buy a 1031 property exchange, you can save up to 30 percent on capital gains tax, which actually means that you are going to make a big profit on the sale. You can also hire experienced 1031 exchange attorney to get best solutions.
Image Source: Google
It is very important for some companies and individual sellers who earn income from the purchase and repair homes for resale.
Keep in mind that the 1031 property exchange involving the exchange can only be done with the property for investment or commercial purposes.
Property acquired for resale immediately ineligible. Both 1031 Exchange properties that are for sale, and one that is acquired must be qualified under IRS code, and the transaction is often referred to as "like-like" exchanges.
You should also be aware of the time frame when it comes to the exchange of 1031. Also, the amount of debt owed on the new property must be equal to or greater than the debt on the property being sold.
If the new property has a debt for less than the property being sold, the transaction will only be eligible as a partial 1031 exchange and the debt is taxable differences.