1031 Tax Exchange Information
• ABOUT 1031 EXCHANGES
A 1031 Exchange (Internal Revenue Code 1031) provides for the tax deferral of real and personal property. If done correctly, investors defer capital gain tax due in connection with the sale of property, enabling them to leverage their investment portfolio.
Example Leverage Aquisition
Equity from sale 500K, Capital Gain 100K, Net Proceeds 400K, 25% down payment, 75% LTV, purchase of $1,600,000........if an investor completed a 1031 exchange, the investor can purchase 2million in property, a difference in value of $400K!
• 1031 EXCHANGE NEWS
Example Leverage Aquisition
Equity from sale 500K, Capital Gain 100K, Net Proceeds 400K, 25% down payment, 75% LTV, purchase of $1,600,000........if an investor completed a 1031 exchange, the investor can purchase 2million in property, a difference in value of $400K!
• 1031 EXCHANGE NEWS
Q: Is there any way to get an extension on the 45 day or 180 day deadlines?
A: No extensions are allowed. Your identification of replacement property must be received on or before midnight of the 45th day after the close of sale of the relinquished property. With respect to the exchange period, it ends on the earlier of the 180th day or the due date of your tax return for the taxable year in which the transfer of the relinquished property occurs.
A: No extensions are allowed. Your identification of replacement property must be received on or before midnight of the 45th day after the close of sale of the relinquished property. With respect to the exchange period, it ends on the earlier of the 180th day or the due date of your tax return for the taxable year in which the transfer of the relinquished property occurs.
posted by Big Cheese at
7:47 AM
