Search results “Exchange capital gains”
Capital Gains Tax on the Sale of Real Estate
Have a 1031 exchange question you'd like addressed? Post it in the comments! A basic calculation of tax on the cash-out of an investment property of real estate and the potential to defer these taxes by reinvesting sales revenue into a 1031 like-kind exchange.
Views: 62927 Accruit
All About 1031 Tax Deferred Exchanges - Real Estate Investment Tips
For an experienced SF Bay Area real estate agent visit http://iLiveInTheBayArea.com Like me on Facebook: http://fb.com/iLiveInTheBayArea Thumbs up, favorite, share, subscribe and make a comment! Most people are aware of the fact that when you sell a long term investment such as real estate or stocks, you have to pay taxes. And these taxes don't come cheap -- currently capital gains tax is 15%, and California has its own capital gains tax of 9.3%. To put this in perspective, if you bought a property for $500,000 and years down the line you sell the same property for $1M, on that $500k profit you have to pay $121,500...PLUS your cost recovery recapture...but did you know there's a way you can defer that and not even pay a SINGLE PENNY?? It's called a 1031 Tax Deferred exchange. A 1031 exchange is when you sell your property and buy another like-kind property within a certain time frame and follow specific rules. Now you have to note, that this is a *tax deferred* investment strategy. What that means is that you will just keep rolling over what you owe in taxes to some future date. If you ever decide to completely abandon investing in real estate altogether, you will have to pay it all back. The idea though is to continuously roll it over indefinitely until you pass away. The first step that needs to be taken when doing a 1031 exchange is the process of finding a good qualified intermediary, or QI. The QI is a company that will be the "middle man" throughout the 1031 exchange process. There are two key time frames you have to keep track of with a 1031 exchange. From the date you sell your property, you have 45 days to identify a new property or properties. The second is that you have 180 days to CLOSE on the new property you identified; again this starts from on the date you sell your property. These dates are non-negotiable. Within this 45 day period, you can choose up to 3 different options. The first and most common option is the "3 property rule". The rule is that you can identify a total of 3 properties at any price. A 1031 exchange works just like a regular sale, but with the qualified intermediary acting as the "go through" person. Throughout the process, you are not allowed to touch ANY funds. If you do decide to pull any funds out, it's considered "boot" and will become taxable the second it leaves the QI's control. By FAR the most common question I get is in regards to the "like-kind" statement. If someone sells an apartment, do they have to buy another apartment, or can they buy an industrial warehouse? The answer is YES. Like kind means real estate -- period. If you sell real estate -- be it an apartment complex, an office space or a piece of raw land -- you can buy other real estate. The second most common question I get...Can I 1031 exchange my primary residence?? Well...you don't need to! In section 1034 of the internal revenue code, you can sell your primary residence and not have to pay taxes for up to $250k if you're single or $500,000 if you're married. When it comes to the value of the new property or properties, the basic point is this. You have to put in equal or more money, and buy an equal or larger valued property. The loan amount is completely irrelevant so long as those two amounts are satisfied. Remember, 1031 exchanges might not be the best option for every single person, but it's usually the most preferred option for most investors. If you're looking to avoid paying capital gains tax, the 1031 exchange is by far the most common financial technique...now that's good to know. Contact Davide Pio Today | SF Bay Area Real Estate http://iLiveInTheBayArea.com | 510-815-2000
Section 1031 Exchange Basics: How To Avoid Capital Gains Tax
In this video you’ll learn the basics of section 1031 exchange and how to use it to avoid paying capital gains tax when you sell investment property. The presenter, Wei Ming, will also mention other reasons why investors might choose to use a section 1031 exchange. Read video transcription here: https://www.realwealthnetwork.com/learn/section-1031-exchange-basics/
Views: 180 realwealthnetwork
How capital gains tax works - MoneyWeek Investment Tutorials
Before you sell an investment, you need to think about the tax on any profits you make. In this video, Tim Bennett introduces capital gains tax.
Views: 116016 MoneyWeek
IRC Section 1031 Exchanges: How To Avoid Capital Gains When Selling Property
In this months Equity Advantage Blogcast, 1031 Exchange facilitator David Moore covers capital gains, including how to avoid capital gains and when to contact a 1031 Exchange Expert. Head to our channel for more 1031 Exchange questions! WEBSITE ----------- http://www.1031exchange.com http://www.iraadvantage.net 1031 EXCHANGE FAQ ------------------------------- http://www.1031exchange.com/faq/ SOCIAL MEDIA ----------------- Linkedin: https://www.linkedin.com/company/484108 Google+: https://plus.google.com/+EquityAdvantageIncorporatedPortland Facebook: https://www.facebook.com/EquityAdvantage Twitter: https://twitter.com/BarterbroInstagram: https://www.instagram.com/equity_advantage/ Youtube: https://www.youtube.com/channel/UCbyThSCgw2mJwyIn30aCVEg VISIT MY BLOG ---------------------- http://www.1031exchange.com/category/blogcasts/ Disclaimer: All my opinions are my own. These statements are not meant to be taken as investment advice.
How to Never Pay Taxes on Real Estate
Want to know how you can never pay capital gains taxes on real estate? Watch this to see how you can defer taxes almost forever. ✅Learn Real Estate 💵 Investing 💵 LIVE: https://meetkevin.teachable.com/p/real-estate-investing ✅Learn Real Estate 🎟 Sales 🎟 LIVE: https://meetkevin.teachable.com/p/real-estate-sales 📛📛📛Coupon Expiring 12-31-2018: 10XMas — 10% off📛📛📛 📫Follow me on Instagram: @MeetKevin📫 ⚠️Best way to reach Meet Kevin®: DM on Instagram⚠️ 📅T & Th: 9:30 a.m.: Private LIVE Real Estate Investing Consulting & Coaching/Mentoring. 📅W & Fri: 9:30 a.m.: Private LIVE Real Estate Sales Consulting & Coaching/Mentoring. 📅MWF: 9:00 a.m.: Real Estate & Finance Videos. 🎁 Random: Public Livestreams on the Market. ╔══════════════════════════╗ ----♻️ Incredible, LIVE Real-Estate Courses ♻️ ---- ------ 🏘https://meetkevin.teachable.com/🏘 ------ ——💬Questions before you Buy? DM Kevin personally💬—— —————————@MeetKevin ————————— ╚═══════════════════════════╝ ●▬▬▬▬▬๑۩۩๑▬▬▬▬▬▬● 🚗6 Months FREE Supercharging 🚗 Use this Referral Link to Buy a Tesla: 🔑 http://ts.la/kevin5689 ●▬▬▬▬▬๑۩۩๑▬▬▬▬▬▬● ❎I am not a CPA, attorney, or financial advisor and the information in these videos shall not be construed as tax, legal, or financial advice from a qualified perspective. If you need such advice, please contact a qualified CPA, attorney, or financial advisor. Linked items may create a financial benefit for Meet Kevin®. The Paffrath Organization is a licensed real estate brokerage doing business as Meet Kevin® in California under DRE #02032575. Trademarked Slogans (available for licensing at the link below): ⛔️Meet Kevin ® ⛔️No-Pressure Agent ® ⛔️Providing More ® https://meetkevin.teachable.com/p/trademarks #RealEstate #Investing #Finance
Views: 10663 Meet Kevin
How to avoid paying capital gains tax
Did you know if you sell anything you own for more than you paid for it, then you may owe capital gains tax? Here's how you can avoid it, using chocolate coins to demonstrate.
Views: 28133 Washington Post
Capital Gains - The New Tax Rules 2018
House and Senate Tax proposals both aim to change the Capital Gains exclusion time frames for those selling a home as of Jan 1. 2018, no longer excluding up to $500,000 in home sale profit (for married couples, $250,000 for single individuals) if they don't meet the criteria of living in the home 5 out of the last 8 years. The current law excludes these amounts from being taxed as Capital Gains if residing in the home 2 out of the last 5 years. This is may be a game changer for many who've benefited from soaring Real Estate values.
The 6 Rules of Using a 1031 Exchange
The 6 Rules of Using a 1031 Exchange At Morris Invest we work with many clients that use a 1031 Exchange to buy real estate. BOOK A CALL WITH OUR TEAM TODAY AT MORRIS INVEST: www.MorrisInvest.com A 1031 exchange is an incredibly powerful tool that allows an individual to save on taxes after the sale of a piece of real estate. This tax deferral program permits the investor to sell a real estate property and then reinvest the funds in a property of equal or greater value. Doing so allows the investor to keep more money in their pocket, and defer all capital gains taxes. In this video, Natali and I are sharing the six rules you must follow when conducting a 1031 exchange. We’ll discuss best practices for dealing with the IRS, and what you must do to successfully complete a 1031 exchange and defer taxes. We’ll also share more details about our favorite 1031 experts, and discuss resources you can use to learn more. If you've ever wondered about the specifics of deferring taxes in real estate, you won't want to miss this video! We're sharing concrete examples why you might want to conduct a 1031 exchange, and how to do it the right way! EP197: The Legal Loopholes of Real Estate Investing - Interview with Garrett Sutton: https://goo.gl/KHgz6Y Loopholes of Real Estate by Garrett Sutton: https://goo.gl/1ZR9VK EP053: The Power of a 1031 Exchange for Exploding Your Rental Portfolio - Interview with Lance Growth: https://goo.gl/z13Sp1 EP158: How to Defer Taxes Forever with Real Estate - Interview with Leonard Spoto: https://goo.gl/Mo7e6V Show notes: http://morrisinvest.com/episode214 BOOK A CALL WITH OUR TEAM TODAY AT MORRIS INVEST: https://goo.gl/EbDRWj VIDEOS ABOUT GETTING STARTED IN REAL ESTATE https://www.youtube.com/playlist?list=PLZdhTWJ6Yawp1LPllyyeQho_ouMhrbOy6 VIDEOS ABOUT REAL ESTATE NEWS https://www.youtube.com/playlist?list=PLZdhTWJ6Yawp7aUQgMPmAanHSYgP-UI0i SUBSCRIBE AND JOIN OUR AWESOME COMMUNITY: https://www.youtube.com/c/MorrisInvest SUBSCRIBE TO THE iTUNES PODCAST: iTunes: https://goo.gl/tSfSM8 FOLLOW ME ON SOCIAL MEDIA: Twitter: http://www.twitter.com/claytonmorris Facebook: https://www.facebook.com/MorrisInvest Instagram: https://www.instagram.com/claytonmorris
Views: 21445 Morris Invest
Taking the Bite Out of Capital Gains Tax!
In this video you'll learn about taking the the bite out of capital gains tax! You work hard for your money and deserve to keep as much as possible. After watching this episode you'll know 8 ways to reduce capital gains tax! **For referrals to top agents near you, please email me at: [email protected] Thank you!** Join us live every Wednesday at 11am PST. See you soon! Timeline: 1. 0:34 - What is Capital Gains Tax? -Capital Gains Tax Explained USA. 2. 1:45 - Know the Capital Gains Tax Real Estate Rules! 3. 2:28 - Consider Using a 1031 Exchange Real Estate! 4. 3:28 - Know What Qualifies for 1031 Tax Deferral of Capital Gains Tax! -Avoid Capital Gains Tax on Rental Property Strategies! 5. 4:52 - Timelines to Execute a 1031 Like and Kind Exchange! https://www.irs.gov/publications/p544 6. 6:39 - Sell a Losing Property! -Tax Loss Harvesting techniques. https://www.wsj.com/articles/SB10001424053111904070604576518200712567050 7. 7:34 - It's All About Timing! 8. 8:07 - Consider a Deferred Sales Trust! https://www.law.cornell.edu/uscode/text/26/453 9. 9:06 - Serve Your Patriotic Duty! Getting started in real estate investing just got easier! https://www.roofstock.com/u/andrewfinney As we move forward together please feel free to reach out to me with any questions or ideas for other videos you would like to see. Share your savvy tips how to reduce capital gains tax with us in the comments section below. Thank you. Let's continue to learn and grow together as community and team! If you want help finding one of the best real estate agents in the nation, a CRS please let me know. I'm here to help! Want to know more about investing in Las Vegas real estate or more about Las Vegas real estate, please let me know. I'm here to help! Thank you for watching! =) Enjoy an amazing day! -Your Real Estate Geek, Andrew Finney Contact info: Andrew Finney USMC Combat Veteran/ Trusted Real Estate Advisor License #S.0173260 - Las Vegas Realtor Call/ Text: 702-710-0287 Email: [email protected] https://www.andrewfinneyteam.com/ King Realty Group 6955 N. Durango Dr. Suite 1004 Las Vegas, NV 89149 Designations- Certified Residential Specialist (CRS) Accredited Buyer's Representative (ABR) Sellers Representative Specialist (SRS) Certifications- Military Relocation Professional (MRP) Disclaimers/ Credits: Awesome Music Courtesy of: Song: Syn Cole - Feel Good [NCS Release] Music provided by NoCopyRightSounds. Video Link: https://www.youtube.com/watch?v=q1ULJ92aldE Download this track for FREE: http://bit.ly/SynColeFeelGoodDL At the time of production, Andrew Finney, S.0173260, is a real estate salesperson at King Realty Group in Las Vegas, NV. Andrew's videos are his own and do not necessarily represent the views and/ or opinions of KRG. The purpose of Andrew's videos are to educate you and help you make sense of the real estate process. If you have questions about home loans, real estate, taxes, financial advice, insurance, or any other services where you live, you are advised to reach out to the appropriate professional for further counsel about your own unique situation. Images are licensed and purchased through 123rf.com Roofstock and Andrew Finney have an affiliate partnership. When you take advantage of using their excellent resources in finding your next rental property around the USA, I will earn a commission. This doesn't cost you a penny, so please use the link. Please know I greatly appreciate you using this link and the commissions earned will assist me in making even better videos moving forward. Thank you! Video Inspiration: https://www.realestate.com/articles/finance/avoid-capital-gains-tax-on-rental-property
Views: 110 Andrew Finney Team
Avoid capital gains-exchange
Avoid capital gains-exchange Lorie Balzar of www.BasicsOfRealEstateInvesting.com You are probably aware of that when you sell your investment in real estate you will have to pay capital gains on any profit you make. However there is a way to avoid getting taxed on your capital gain by the 1031 exchange. This is a policy where you can exchange your capital gain and invest it in another property without having to pay capital gain on it. I must warn you that there are rules that have to be followed when using 1031 exchange. When you use this tax strategy it can benefit you big time.
Views: 146 yougettraffic
How To Avoid Capital Gains Tax When Selling Real Estate (2019) - 121 Exclusion Explained
Discover How To Avoid Capital Gains Tax When Selling Real Estate in this provocative video by Toby Mathis founding partner of Anderson Business Advisors, attorney and author of 'Tax-Wise Business Ownership'. You're about to learn insider tips on 'Selling Your Home Tax FREE!'. Find out what happens if you buy a house and convert it into a rental property that tanks. Do you get to write it off? What about if you buy a house, live in it as your private residence, it tanks and then you convert it to a rental that you later sell. Would you be able to write that off your taxes? Capital gains is what we're talking about when you sell an asset. For homes, there's an exclusion to the capital gains referred to as 121 exclusion. What about home offices, where you did the home office deduction as a sole proprietor, that's also considered depreciation. Would you be able to recapture that? You'll get step-by-step real-life examples from Toby Mathis on how the rich avoid taxes when selling their homes in this video. HAVE QUESTIONS or COMMENTS about your rental real-estate and capital gains? ASK and or COMMENT below NOW! Discover more insider tips and tactics for real estate investors on.... Our Youtube Channel - https://www.youtube.com/c/AndersonBus... 🚀 Ready To Take Your Business To The Next Level While Protecting Your Assets From Frivolous Lawsuits? 💰 Get Your FREE 30 min Consultation & Wealth Planning Blueprint NOW https://AndersonAdvisors.com/youtube-... Check out https://AndersonAdvisors.com for financial strategies and details on upcoming workshops. 800.706.4741 [email protected] https://AndersonAdvisors.com Twitter: @Clint_Coons Blog: https://ClintCoons.wordpress.com The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
Does Capital Gains Tax Apply to you and 1031 Exchanges
http://www.JuliaMSpencer.com - Does Capital Gains Tax Apply to your personal Real Estate? Answer here! That's right. Sign up for your FREE account today and download your FREE Guide to Real Estate Investing on this and many other Real Estate topics discussed and backed with 25 years of experience at http://www.JuliaMSpencer.com.
Views: 76 Julia M. Spencer
LIVE with PPID: Capital Gains Strategies for Real Estate Investors (1031 Exchange)
1/18/2019 | Fred DeCicco, Partner and head of Real Estate / Commercial Law Department at Pollack, Pollack, Isaac & DeCicco, LLP, went LIVE to discuss how to reduce or avoid "Capital Gains Tax" on property. Watch to learn more! www.ppid.com
Defer Capital Gains Tax On Real Estate Sales (1031 Exchanges)
http://www.realestateguide2success.com - In this episode, Ronnie responds to a question received on the website about 1031 tax deferred exchanges, and how they can be used to keep the profit from the sale of an investment property working for you over time. Also called 1031 like kind exchanges, these transactions can be used to help with your annual tax planning, allowing you to keep your available capital in your business, and provides more time to generate tax deductions to help reduce the capital gains tax on the sale of your property. You can look at it as a sort of capital gains tax exemption, meaning if you execute the 1031 exchange, you are exempt from paying capital gains tax on the property at that given point in time. Remember to join our community over at Facebook as well - http://www.realestateguide2success.com/facebook
Views: 3405 InvestSuccess
1031 Exchange & Capital Gains Tax
When you do a 1031 tax exchange it can save you capital gains tax and recapture depreciation tax. Taxes without a 1031 exchange can range 15 to 25 percent. They will be higher the more valuable your investment property or if you've claimed depreciation on the asset you're exchanging. Learn how to save money with a 1031 exchange.
Views: 1930 ExpertRealEstateTips
Can you Avoid Capital Gains Exchanging Bitcoin for Other CryptoCurrency
**This video is not intended to be tax advice. Seek your own tax professional about your personal tax situation. ** Grab a copy of my Bitcoin Tax Guide here: bit.ly/bitcointaxguide Visit the blog here: www.homebiztaxlady.com Book a tax consult here: bit.ly/ETSTax15 Connect with me! Facebook: http://Facebook.com/homebiztaxlady Instagram: https://www.instagram.com/homebiztaxlady/ Twitter: https://www.twitter.com/homebiztaxlady/ Pinterest: https://www.pinterest.com/homebiztaxlady/
Views: 4941 Home Biz Tax Lady
Avoid Capital Gains Tax on Rental Property
Avoid Capital Gains Tax on Rental Property by utilizing a 1031 exchange when you sell your rental property. We specialize in 1031 Exchange Real Estate and help you every step of the way.
Views: 5465 Rick Sarouk
How Does Divorce Affect Capital Gains Exemptions When Selling A Home?
Carol plans to sell her house, which she's lived in for 40 years, in the next year and a half. She would like to know if she can still collect the $500,000 deductible as a married couple even though she hasn't been married for 2 years. Original air date: May 14, 2017 - Hour 2, Call 1. Wes Moss is the host of MONEY MATTERS – the country’s longest running live call-in, investment and personal finance radio show – on News 95-5FM and AM 750 WSB. You Can Retire Sooner Than You Think, Buy it here: https://retiresoonerbook.com/
Monetized Installment Sale – Obtain Cash When You Sell and Defer Capital Gain
Using a Monetized Installment Sale, you can obtain cash when sell your highly appreciated asset, while deferring any capital gains tax for up to 30 years. You net 93.5% of the net sales proceeds in cash at closing. Use this approach when you want a cash exit from your investment, or need a backup plan when a 1031 exchange fails, without resorting to a deferred sales trust and its inherent costs and restrictions on use of your money. Sellers of highly appreciated assets, such as real estate, businesses, farm property or intellectual property, may be reluctant to sell if they will have to pay a large amount of capital gains tax. Now there's a way to defer capital gains for as long as 30 years and at the same time net 93.5% of the net sales proceeds in cash at closing. The transaction structure to accomplish this is known as a Monetized Installment Sale. It has been accepted by the IRS and used by major corporations for approximately 20 years. One application of this strategy is rescuing a seller from capital gains when their 1031 tax deferred real estate exchange fails. For more info visit https://www.deferredcapitalgain.com
Views: 7065 Deferred Capital Gain
1031 Exchange - Real Estate Exam
Understand what a 1031 Tax Deferred exchange is so you can pass your real estate exam. http://prepagent.com/ For more study aids to pass your real estate exam such as videos, webinars, crosswords, MP3 downloads, e-books and exam prep questions with real time scoring and feedback.
Views: 9903 Prep Agent
Haven 1031 Exchange - Defer Capital Gains Taxes
Retain the approximately 30%+ that would normally go to the IRS if you will use it to buy replacement property with the tax code guidelines. Let us help. 866-794-1031 havenexchange.com
Views: 469 Haven Exchange
Avoid Paying Capital Gains Tax With Exchange 1031
http://www.RealEstateBusinessWealth.com Claim your FREE video & learn how to Avoid Paying Capital Gains Tax With Exchange 1031 by visiting our site and indulge on more videos to create passive income.
Views: 784 alwomx38
1031 Exchange  •  Never Pay Capital Gains Taxes and Beat the IRS
A 1031 Exchange allows for tax free real estate investing. A legal tax loophole to avoid paying capital gains is the 1031 Exchange. It allows for tax free real estate investing. A 1031 exchange gives us a way to move out of an asset, and an exit strategy if you will need to relinquish your property without paying the taxes which are ordinarily due when you liquidate an asset. The key is that you have to exchange it for another property of "like kind". What do I mean by like kind? Real estate for real estate, it could be a house for a condo, condo for a warehouse, or warehouse for an apartment complex… as long as it is real estate for real estate – the key is you cannot accept any cash. Three main rules to follow: 1. But the relinquished and acquired property must be of productive use in a trade or business or for investment (owner occupied residences are in eligible). 2. Both the property exchanged in the one receipt must be of like kind (meaning real estate for real estate). 3. The exchange must occur. The owner cannot sell one property for cash immediately use cash proceeds to purchase another property. That is to say, the owner cannot touch cash. Two deadlines to meet with a delayed exchange: The IRS allows the owner of the relinquished property up to 45 days to identify a replacement property The second deadline to close the next transaction within 180 days after the property is relinquished Subscribe: https://bit.ly/2QiweFg
Views: 388 Finance 101
Capital Gains and Losses, Section 1231 Assets | Corporate Income Tax | CPA REG | Ch 14 P 1
Capital assets, 1231 assets, personal assets, ordinary assets, holding period, personal use assets, real property, capital gain treatment, non taxable exchange, capital gain, capital losses, corporate capital gain, short term capital gain, long term capital gains, collectible, section 1250 recapture, capital loss carryover, carryback, depreciation recaptures, netting of capital gain, lookback treatment, section 1245 depreciation recapture, section 1250 recapture, section 1250 gain, unrecaptured 1250 gains, section 1231 loss, 1231 gain limitation, cpa exam, corporate taxation
Tips for Deferring Capital Gains Taxes with Exeter 1031 Exchange Specialist, Bill Exeter
Tax season is a time when many investors realize too late that they could have deferred significant capital gain taxes through a tax-deferred exchange pursuant to Section 1031 of the Internal Revenue Code ("1031 Exchange"). Bill Exeter, president and chief executive officer, Exeter 1031 Exchange Services, LLC, explains to host Craig Sewing, how the capital gains on investment real estate can be deferred through a 1031 Exchange. Exeter also discusses the 45 day identification period or ID deadline, 180 day exchange period, and the definition of like-kind property for replacement property purposes. For more information, please visit our website at http://www.exeterco.com or call our national headquarters office at (619) 239-3091. #1031Exchange #Exeter1031 #TaxDeferred #BillExeter #capitalgain
1031 Exchange Tax Free Real Estate Investing
https://www.freedommentor.com/1031-exchange/ Discover the power of the 1031 exchange and how your real estate investing profits can be tax free gains.
Views: 61039 Phil Pustejovsky
What is a Section 1031 Exchange?
One of the questions we often hear is What is a 1031 Exchange? Why should I use a 1031 Exchange? When should I use a 1031 Exchange? The sale of a rental property generally triggers capital gain taxes and depreciation recapture. It can also trigger the Medicare Surcharge often referred to as the Obamacare Tax. The 1031 Exchange is a way to defer the payment of the capital taxes, depreciation recapture taxes and triggering the Medicare Surcharge or Obamacare Taxes. The term 1031 Exchange is named after Section 1031 of the Internal Revenue Code. Typically, 1031 Exchanges involve the sale of rental or investment real estate. The benefit to the real property owner or investor is that they get to build their wealth faster by keeping all of their money working for them instead of paying taxes. There are specific requirements real estate investors must follow to qualify for tax-deferred exchange treatment under Section 1031. In order to defer all of their taxes, they must reinvest in one or more replacement properties of equal or greater value. They must identify their replacement properties and complete their 1031 Exchange within very specific tax-deferred exchange time frames. 1031 Exchange transactions are also referred to as tax-deferred exchanges, like-kind exchanges, starker exchanges, delayed exchanges or tax-free exchanges. 1031 Exchanges are complex, that's why you need an expert! Call Exeter 1031 Exchange Services, LLC at (619) 239-3091 or visit http://www.exeterco.com.
How to avoid capital gains on the sale of real estate
If you sell your home, you may exclude up to $250,000 of your capital gain from tax. For married couples filing jointly, the exclusion is $500,000. Also, unmarried people who jointly own a home and separately meet the tests described below can each exclude up to $250,000. For other property, you may use a 1031 exchange. If you sell rental or investment property, you can avoid capital gains and depreciation recapture taxes by rolling the proceeds of your sale into a similar type of investment within 180 days. This like-kind exchange is called a 1031 exchange after the relevant section of the tax code. https://www.youtube.com/user/lawtubechannel to subscribe to our newest legal videos. http://www.lawtube.com to check out our Video Law Library. Attorney Tom Olsen is host of the Olsen on Law Radio Show on FM 96.5 WDBO in Orlando. You can reach Tom at 407-423-5561 or [email protected] Tom has been answering legal questions on his radio show for over 30 years and has been practicing law in Orlando, Florida for over 30 years. Also, TEXT or call Chrissy Merrill at 407-808-8398 with your legal questions. The Olsen on Law Radio Show is the longest running legal radio show in the world. Produced by Professional Media Ideas. Call or text Chrissy Merrill at 407-808-8398 or by email at [email protected] Transcript: Attorney Tom Olsen: Stephen, you're on News 96.5. Go ahead. Stephen: Yes. My question was, I have several pieces of property; one, I live in and then I have two rentals. I want to sell and invest either on an empty lot I've already owned or on a new piece of property somewhere in Tennessee. My concern was, how do I do this without losing so much money to taxes and so forth? Because when I bought the properties, I bought them pretty cheap and now they're worth quite a bit of money. Attorney Tom Olsen: Stephen, are you married or single? Stephen: I'm single. Attorney Tom Olsen: Stephen, as far as the sale of your home is concerned, you can avoid capital gains on up to $250,000 of profit. Hopefully, your home is not going to be an issue for you. Stephen, as far as your other- Stephen: No. The home that I live in, I owe about $126 on it. I could probably sell it for 280. The property that I own clear out the other rental, it's probably worth about 140 and I paid about 70 for it. The other property, I inherited it. When I inherited it, it was only worth about $5,000. Between the two lots that I have that I inherited, they're probably worth about $350,000 and 400,000- Attorney Tom Olsen: Stephen, I get it. We talked about avoiding capital gains on the sale of your home only up to $250,000 in profit. Otherwise, when you sell those lots, you're going to pay long-term capital gains taxes which I think are 15%. However, I think that there still is available to you, what they call a like-kind exchange. I don't see people using it anymore like they used to but I think a like-kind exchange is still available to you, Stephen. What would happen is you'd sell those two rental properties and invest it in another property up in Tennessee, if you wanted to. It does not avoid the capital gains taxes, it just delays it to another day when you sell those properties up there. If that's of interest to you, check it out. It'd be a like-kind exchange, Stephen.
Views: 1227 LawTube
Capital Gains and 1031 Exchange
Why every homeowner should know these two major tax exemptions.
The 7 BEST Tax Write-Offs when Investing in Real Estate!
Here are my 7 favorite tax write offs when it comes to owning real estate or investment property and a few examples of how each of them apply. Enjoy! Feel free to add me on Snapchat / Instagram: GPStephan Owning real estate is much more than just owning a cash producing property that provides monthly profits, what makes it really unique against almost every other investment is the tax write offs associated with it. In real estate, a return could be calculated in so many different ways besides “I get $1000 per month in rent.” What makes real estate really special is that you could often make money every month, but on paper show a loss…and this cancels out your tax obligation. Here are some of the tax write offs that make real estate a phenomenal investment. 1. Mortgage interest write off - On an investment property, the interest that you pay on your mortgage is a write off against your rental income. On a primary residence, the mortgage interest on the first $750,000 could also be a write off, potentially saving thousands in owed taxes. 2. Property taxes - This is another deduction you can write off against your rental and personal income. As a primary residence, you’re allowed to deduct the first $10,000 of your property tax against your personal income As an investment property, you can still deduct 100% of your property taxes against your rental income. 3. Depreciation - This is what often leads you to be positive in your bank account each month, but on paper you could show a loss, lowering the amount you’d pay taxes on. With rental property, you’re allowed to depreciate the asset over a certain period of time. Cost segregation analysis can sometimes speed this dramatically. However, keep in mind that because you’re depreciating a property, eventually the tax you depreciate will need to be paid at the time of sale if you DON’T 1031 it, so it’s not a tax avoidance entirely, but this works great if you plan to keep the home as a rental or eventually do a 1031 exchange later on. 4. 1031 exchange. This is a very popular real estate tax benefit that almost every real estate investor uses. This means that you can sell your property and “Exchange” it for a like property of similar or greater value without paying taxes at the time of the same sale. This is how many people can buy and sell millions without ever paying capital gains taxes, as long as they don’t sell and continue 1031 exchanging properties. 5. Capital gains exclusion on a primary residence: As long as you’ve lived in the home for 2 of the last 5 years, you can sell a your primary residence up to $250,000 HIGHER than you bought it for if you’re single, or $500,000 if you’re married, without owning capital gains tax. 6. Cash out refinance - When used against a rental property, you can refinance the extra equity in the property and pull out the profits tax free. Even though this is technically a loan you have to pay back, you’re borrowing from the existing equity and using that money without paying taxes on the money that hit your account. This gets a little more complicated as a primary residence, but on a rental, this is a huge advantage because the new mortgage you pay on the amount pulled out counts against your rental income…so you can use this money for pretty much whatever you want, hopefully just to re-invest. 7. Finally, rental property income is not taxed as self employment income, which carries a 15.3% self employment tax (not fun). But keep in mind this is also dependent on how you hold the property and specific ways you’re treating your income. Disclosure: I am not a tax consultant or CPA. These are just a few tax advantages I have used myself and I have simplified these significantly for purposes of explaining them on YouTube. Check with your own accountant or CPA because every situation is going to be unique. For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3
Views: 16640 Graham Stephan
1031 Exchange: What Is a Capital Gain?
When you're doing a 1031 tax exchange, you need to know what a capital gain is. A capital gain is a profit on a capital asset. Capital gains tax is 15 percent on real estate. But if you're doing a 1031 exchange with another type of investment you'll likely pay your ordinary income tax rate on the capital gain.
Views: 1040 ExpertRealEstateTips
Deferring capital gains with a 1031 exchange
With the ability to defer capital gains, you can keep more money working for you which means more money to grow.
Views: 9 Jed Wunderli
Capital Gains and Losses for Corporations | Corporate Income Tax | CPA REG | Ch 17 P 5
Capital gain treatment, non taxable exchange, capital gain, capital losses, corporate capital gain, corporate capital loss, short term capital gain, long term capital gains, collectible, section 1250 recapture, capital loss carryover, carryback, depreciation recaptures, netting of capital gain, lookback treatment, section 1245 depreciation recapture, section 1250 recapture, section 1250 gain, unrecaptured 1250 gains, section 1231 loss, 1231 gain limitation, cpa exam, corporate taxation, ordinary income, Capital assets, 1231 assets,
Everything You Need to Know about 1031 Exchanges!
So let's say you've got yourself a rental property and you've worked hard to get rents up and keep expenses low. The property is profitable and you are looking to trade up by selling it and buying a more expensive property. The problem is that if you sell, you will have to pay capital gains tax on the sale as you would with a fix and flip or wholesale deal. That tax could be a heavy hit if you have sold the property for a gain, and it will stunt your growth as an investor. What can you do? Learn more by grabbing my New Book "Raising Private Capital" Available now on Amazon http://bit.ly/RPCbook That's where a 1031 exchange comes in. A 1031 is a vehicle through which you can sell rental real estate and roll all the gain into a new purchase. Sound good? In today's video, I go into detail on the rules of 1031's. As always, please email us any real estate questions to [email protected] and we will answer them on an upcoming episode! Learn more about The DeRosa Group at http://www.DeRosaGroup.com or on BiggerPockets.com - https://www.biggerpockets.com/renewsblog/author/mattfaircloth/ Matt & Liz, founders of DeRosa Group, were recently second-time guests on the BiggerPockets Podcast. Check it out: https://www.biggerpockets.com/renewsblog/bp-podcast-203-finding-deals-funding-contractors-mentors-matt-liz-faircloth/ Find us on Facebook https://www.facebook.com/thederosagroup/ Learn More about The DeRosa Group by Checking out our popular videos: How I bought a 18 Unit apartment with NO MONEY out of Pocket https://www.youtube.com/watch?v=3dDRVGYI1wg&t=14s How I turned a Duplex into 20 units https://www.youtube.com/watch?v=JzhkWhyssaM&t=1s How to Remove a Bad Tenant (without having to evict) https://www.youtube.com/watch?v=FnGZQOebixY&t=1s Tips for Hosting a successful Open House https://youtu.be/8DBtD1OcjKQ Best ways to Collect Rent From Tenants https://www.youtube.com/watch?v=iOeTxzDjXWY&t=3s The Pros and Cons of Using LLC for Rental Property https://www.youtube.com/watch?v=edHaGYXhH1I&t=24s 21 Year Old Makes $23,000 on First Wholesale Deal https://youtu.be/UkeUxkLQTFc Chat with Chatto Episode 001 First Actions Steps to take Learning to Wholesale houses https://youtu.be/fzXubrnuGKM
Views: 17108 Derosa Group
Capital Gains Taxes & Depreciation For Your 1031 Exchange Explained by Robert "Rusty" Tweed
by Rusty Tweed, President & Owner of TFS Properties, Inc. Today, we're going to be talking about Capital Gains Taxes and an often overlooked area called depreciation and what happens if you don't do a 1031 exchange. Let's take the example of an apartment building that was bought twenty years ago for $1M. That $1M original purchase price is what we call the Basis, and that's where we calculate capital gains tax from. So this property goes up in value and today it's worth $3M. So from the original $1M basis, it's now worth $3M and that gives us a $2M capital gain. However, the huge area that people often overlook is called depreciation. Now when you have an apartment building, you're writing off a value of that property every year against your taxes. That's what we call depreciation. We've made this very simple and to get exact numbers, you should definitely talk to your own CPA. In this case, we've said that over twenty years you've taken $600K in depreciation. What that means is you've written off $600K in your tax return over that twenty-year period and you've lowered your balances from the original $1M down to $400K. This means you have an additional tax to pay on that $600K. Again, $2M gain. You pay the federal taxes of 20% i.e. $400K. Now, the $600K depreciation, which we call the Depreciation Recapture Tax, is at 25%, which in this scenario is $150,000. On top of that, we're in California, so now we have to pay the tax rate that we pay in California: 14.63%. In addition to that, this year, we have the Obamacare tax kicking in, which if you make over $250K, is another 3.8%. In this case, that $2M gain turns into almost $1M of taxes and you're left with $2M. To recap, you've got the tax on the capital gains (on the $2M), the much overlooked depreciation recapture tax and then you have the California tax (on the whole $2.6M), and again, you have the Obamacare tax (again on the whole $2.6M). So on a $3M property sale in this case, you're going to pay close to $1M in taxes. That's why people want to look at doing 1031 exchanges instead.
U.S. - Savvy investors utilize 1031 exchanges to delay capital gains taxes
Hugh Pollard, Vice President with First American Exchange discusses the tax advantages of the 1031 Exchange for real estate transactions and highlights some of the more unusual uses for this creative use of the tax code. Learn more at http://www.us.am.joneslanglasalle.com/UnitedStates/EN-US/Pages/corporate-finance-and-net-lease.aspx
Views: 298 JLL
Crypto Taxes EXPLAINED! Bitcoin/Altcoins, Like-Kind Exchanges, Examples! (U.S. Specific Dec. 2017)
DISCLAIMER: I AM NOT A TAX PROFESSIONAL, PLEASE DO YOUR OWN RESEARCH ON THIS IMPORTANT TOPIC! Many people have been wondering how their crypto transactions/dealings are going to fit into their taxes this upcoming tax season in the U.S. This is admittedly a very confusing topic that is likely going to be a huge hassle. I dove in and did some research on how our crypto/Bitcoin dealings are going to be taxed so I made this video to share my findings with you! Topics include: Like-kind exchanges, Capital gains, FIFO, LIFO, determining USD value, spreadsheet example of trading altcoins, and much more! If you find this helpful, I'd love to hear from you in the comments below and also get a LIKE/SUBSCRIBE! Previous Bitcoin taxes explainer video: https://youtu.be/-SvZWDl3wJ4 ******************************************** Hey everyone, thanks for watching. If you enjoyed this video please give me a LIKE and SUBSCRIBE to catch all my future content. If you have any questions definitely leave me a comment below and I’ll try my best to get back to you! Disclaimer: I am not an official investment advisor - everything I say is purely my opinion. Some of my videos are sponsored, those will be clearly marked by YouTube. If you’re dealing with a new process it’s always RECOMMENDED to try out the whole process end-to-end with a smaller amount before you move the bulk of it. If you want to sign up for various exchanges, you can use my referral code for bonuses. I use all of these exchanges and recommend them: Coinbase/GDAX: https://www.coinbase.com/join/5925a6f5f35ce600bcd082d2 Binance: https://www.binance.com/?ref=11165323 Kucoin: https://www.kucoin.com/#/?r=1KRQ5QR Changelly: https://changelly.com/?ref_id=38a4c94cf5c4 Also be sure to check out our communities: Facebook (Main Group): https://www.facebook.com/groups/cryptoforbeginners/ Facebook (Mining): https://www.facebook.com/groups/miningforbeginners/ Facebook (ICOs): https://www.facebook.com/groups/icoforbeginners/ Steemit: https://steemit.com/@btcforbeginners Instagram: https://www.instagram.com/btcforbeginners/ Twitter: https://twitter.com/btcforbeginners/ Intro Music Credits: ‘Soaring Intro A” Jay Man – OurMusicBox http://www.youtube.com/c/ourmusicbox
Views: 32360 Bitcoin for Beginners
Denver Real Estate Agent: How to avoid the capital gains tax
If you’re an investor, you can avoid paying the capital gains tax on the sale of your rental or investment property by doing a 1031 exchange. To do a 1031 exchange, there are six rules that you must know. The first is that both the old property and the new property must be held for investment. The second is that there is a 45-day identification requirement. To find out the rest of the rules for doing a 1031 exchange, watch this short video. http://homesmiths.blogspot.com/2016/08/avoiding-capital-gains-tax-on-your-home.html Buying a Denver Home? Search ALL Homes For Sale: http://homeexpert.homesmiths.com/results-gallery/?status=A&utm_source=BLOG&utm_campaign=VideoBlogSearchPage&utm_medium=referral Selling Your Denver Home? Get a FREE Home Value Report: http://www.denvercohomeprice.com/ Jeff “Smitty” Smith The HomeSmiths Team Keller Williams Centennial, Colorado Direct: (303) 886-0499 Office: (303) 480-1399 [email protected]
Jared Zimmer - Capital Gains Tax / 1031 Tax Exchange
http://jaredzimmer.blogspot.com/2013/04/how-to-use-1031-exchange-to-save-bundle.html Believe it or not, the government allows real estate investors to defer taxes to a later date under a little known law called a '1031 Exchange.' In other words, when used properly this law allows you to leverage smaller real estate holdings into larger ones more easily. There are three types of 1031 tax deferred exchanges that can be used, so I've explained each so you know which to consider and whether you qualify. Visit my video blog and I'll teach you how to save a bundle on taxes using 1031 Exchanges! Jared Zimmer RE/MAX Properties Cedar City, UT (435) 327-2090 [email protected]
Views: 94 Educational Videos
Flipping Houses Taxes | What tax do you pay when you flip a home?
Flipping Houses Taxes - http://www.reimaverick.com/flipping-houses/flipping-houses-taxes/ Flipping Houses Taxes | Tax Consequences Real estate investors love to talk about the money that they make on deals, but most are not real open to talking about the tax liabilities of those deals. I would like to preface any further discussion about flipping houses taxes by stating that you should hire a good accountant to assist you with the tax consequences of any deals that you do. When selecting an accountant I would also suggest that you find one that has experience with doing taxes for real estate investors, and preferably one that has real estate investment experience themselves (if it were a perfect world). Flipping Houses Taxes | Is it an investment or a profession? Even if you only do real estate flipping part-time the IRS could see your investment business as your profession. If the Internal Revenue Service decides that your house flipping business instead of an investment, then the type of tax liability will change from a short term capital gain to ordinary income and also include another 15.3% in self-employment taxes. This typically will happen if you are selling too many properties too quickly in the eyes of the IRS, this is subject to the IRS' opinion and could be as little as 2 or 3 flips a year. Flipping Houses Taxes | The 1031 Exchange When we talk about flipping houses taxes most investors think of the 1031 exchange. Section 1031 of the IRS tax code provides a tax-free exchange, a "like-kind" exchange, of a business or investment property and then defer your capital-gains taxes. If you sell a property and then immediately reinvest the gains made from the sale into a similar piece of property, then you can defer the tax liability on the gains made from the sale until you sell the new property, unless you do another 1031 exchange. Two big mistakes that investors, new and old, make with a 1031 exchange are that they don't declare the sale of the property as being a part of a 1031 exchange before they sell the property; and they don't pay attention to the strict deadlines set forth by the IRS for identifying a property to purchase, 45 days, and closing on that property, 180 days. I cannot stress enough the importance of speaking with a good accountant when evaluating the tax liabilities associated with flipping houses taxes. Watch more on Flipping Houses: http://www.youtube.com/watch?v=llesGLXTBJo http://www.youtube.com/watch?v=QyiFKj1LpI0
Views: 16342 Phill Grove
Basis for Nontaxable Exchanges Section 1031 | Corporate Income Tax | CPA REG | Ch 13 P 2
Basis and Holding Period of Property Received 36. Basis of boot received. The basis of boot received is the fair market value of the property. 37. Basis of like-kind property received. Section 1031 provides the following basis calculation formula for the like-kind property received: Basis of like-kind property transferred + Adjusted basis of boot given + Gain recognized – Fair market value of boot received – Loss recognized a. As a validity check, the basis of the like-kind property received also can be calculated using the following formula:  Fair market value of like-kind property received – Postponed gain, or + Postponed loss b. If the basis has been properly calculated with each formula, the results will be the same. 38. Holding period. A separate holding period rule applies for the boot and the like-kind property received. a. The boot has a new holding period (i.e., from the date of the exchange). b. The like-kind property received generally has a carryover holding period (i.e., includes the holding period of the like-kind property transferred) as well as tax attributes (i.e., depreciation recapture). (1) The logic for this is to produce symmetrical treatment in that the like-kind property has a carryover basis. (2) However, in the case of like-kind exchanges after March 1, 1954, the carryover holding period will not be applicable unless the like-kind property surrendered was either a capital asset or § 1231 property.
03 olympic1031 helsdon property should be exchanged to avoid capital gain tax
How does a 1031 exchange work? What property can I exchange and not pay capital gains tax?
Doing a 1031 Exchange (the Easy Way)
See the full blog post at: https://retipster.com/1031exchange Check out RealtyMogul at: https://retipster.com/realtymogul Not long ago, I had a conversation with the folks at RealtyMogul about a pretty brilliant way to AVOID the stressful time crunch that comes with most 1031 exchange real estate deals. (Note: RealtyMogul is a real estate crowdfunding website that allows investors to passively invest in fractional ownership of larger, commercial properties). With RealtyMogul, you can essentially take the sales proceeds from your property, and rather than taking on the stress of finding another investment property within 45 days, you can simply invest your funds into a property through their platform. Why RealtyMogul? There are a few different scenarios where it might make sense to invest your cash into a crowdfunded project, rather than going it alone and relying on hopes and prayers for everything to come to fruition. Scenario 1: When the Deal Falls Apart It's not uncommon for investor has start the 180 timeframe to do a 1031 exchange, but then their deal falls apart. For one reason or another, they're unable to find a good alternative to invest their money into, and they simply need to put their cash somewhere before they run out of time. In these situations, RealtyMogul provides a great "back door" that will allow the investor to place their money where they can still defer the taxes on their capital gains. Scenario 2: When There's Excess Cash Leftover In some cases, an investor may have found a new property, but the new deals only requires a portion of the total sale proceeds they received from their previous property. As such, they need somewhere else to put the remainder of their cash, in order to avoid paying taxes on the capital gains from this excess cash. Again, RealtyMogul provides a great alternative solution, by allowing investors to inject this excess cash in increments as little as $5,000. Scenario 3: The Reluctant Landlord Sometimes an investor wants to keep their investment dollars in real estate, but they don't necessarily want to be a landlord or property manager (and all the headaches that can entail). For instance, if someone inherits an rental property, but doesn't want to get into the rental property business. Alternatively, if someone wants to "cash out" on the appreciation their property has earned, but they don't want to upsize to a larger property with bigger problems to manage. With RealtyMogul, you can still be a passive real estate investor by contributing a portion of the overall proceeds and letting the professionals deal with the hands-on work. When your full-time job is NOT as a real estate investor and you're busy with other things, you may want to do less work and put the day-to-day tasks on someone else who is geared up to handle them (so you don't have to deal with tenants, leases, repairs, trash, etc.). Surety of Closing One of the biggest benefits of working with RealtyMogul is the surety of closing. When an investor commits their funds to one of these projects, they don’t have to worry about the deal falling apart between the 45 and 180 day timeline, because the properties have already been acquired and the financing is in place. RealtyMogul doesn't even bring in the investors until after these milestones have been reached. It's also a much faster process. When you commit to a project with RealtyMogul, you don't have to wait weeks for a closing, the funds typically take 3 – 5 business days to go through. From what I know of this outfit, RealtyMogul is one of the more conservative companies in the real estate crowdfunding space, and they do a great deal of vetting on each property they get involved with. Of course, there's never any guarantee as to how your investment dollars will perform with a company like this, but if you want to work with a company that does regular site visits on every property and is intimately familiar with the numbers on every deal (and can offer a much easier path to completing a 1031 exchange), this could be a company worth your consideration. Have you ever used a company like RealtyMogul before? What was your experience like? Let us know in the comments below!
Views: 964 REtipster
How to Do a 1031 Exchange in NYC (2019) | What is a 1031 Exchange in NYC?
How to Do a 1031 Exchange in NYC: https://www.hauseit.com/how-to-do-a-1031-exchange-in-nyc/ Interactive NYC Rental Property Calculator: https://www.hauseit.com/rental-property-calculator/ A 1031 Exchange is a great way to defer the payment of Federal and State capital gains taxes on a sale as a real estate investor in New York City. So, what is a 1031 exchange in NYC? The 1031 tax exchange is a special tax saving transaction permitted under the Internal Revenue Code. Simply put, a 1031 exchange allows you to defer the payment of capital gains taxes when buying and selling investment real estate. The 1031 like kind exchange originally started as a way for farmers and ranchers to trade livestock with each other without incurring capital gains tax. A 1031 Exchange is also known as a like kind exchange or 1031 tax deferred exchange. 1031 transactions are only allowable for investment, trade or business use real estate. This means you cannot do a 1031 swap for a primary residence. The vast majority of 1031 exchanges will be forward 1031 exchanges, which means you sell first and then buy. What are like kind exchange rules? You must first identify a property that you want to sell. This property is called the “relinquished property.” You must then sell this property and coordinate the closing with a “qualified intermediary” who serves as an escrowee for the sale proceeds. Note that in a 1031 exchange, you never actually touch the proceeds from the sale. As a next step, you must purchase a new property, called the “replacement property,” with the funds held in escrow by the qualified intermediary. If you are buying a property that’s more expensive than what you are selling, you may supplement the escrow funds with additional money or financing. However, you must use up all of the escrow monies in order to completely defer capital gains tax. How long does a 1031 exchange take? You have a limited amount of time to complete a 1031 exchange. The clock begins on the closing date of the relinquished property. From that date, you have 45 calendar days to identify one or more replacement properties and 180 calendar days total to close on the replacement property. Is there a minimum holding period for a 1031 exchange? There is no minimum required holding period for a replacement property that was purchased through a 1031 tax deferred exchange. With that said, immediate flips are not encouraged as you are supposed to go into a 1031 exchange with an investment intention. It’s never a good idea to buy and sell real estate frequently in New York City because high closing costs on both sides will reduce the value of your investment over time. To calculate buyer and seller closing costs in NYC, visit our interactive closing cost calculators: Buyer Closing Cost Calculator for NYC: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/ Seller Closing Cost Calculator for NYC: https://www.hauseit.com/closing-cost-estimator-for-seller-nyc/ Established in 2014, Hauseit is New York City’s largest For Sale by Owner and Buyer Closing Credit Company. Request a Hauseit Buyer Closing Credit: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
Views: 156 Hauseit
Like-Kind Exchange Examples - Real Estate Tax Tips - 1031 Exchanges
https://www.evanhcpa.com In this video I go over a 1031 exchange, also known as a like-kind exchange. It's a transaction, usually related to real estate, where the buyer and the seller swap properties in order to avoid paying capital gains taxes. You don't necessarily need to find someone to trade properties with. You can sell your property to a third party, if you keep the proceeds with a qualified intermediary. This is an important point. If the cash goes to you directly, the like-kind exchange is null and void. You need someone, usually an attorney, to hold the funds until you purchase a new property. You can then pull those funds out to help in the purchase of the new property. You can do a like-kind exchange with any investment property. For example, if you have a business and own the building it's located in and decide to sell it and move to a new building, you can do a like-kind exchange with the selling of the old building and purchase of the new one. You can also do a like-kind exchange if you rent property to somebody. One type of real estate you cannot use for a like-kind exchange is residential property where you yourself live. Neither can you do a 1031 exchange with a development a property, where you buy some land, build a house and sell it. You could potentially do a like-kind exchange with a development property if you rented it out for a satisfactory period of time and then decided to sell it. You could do that, but the 1031 exchange is really only intended for investment property. Most people do this as a way to defer all capital gains, but there are also opportunities for partial 1031 exchanges. You can do a partial like-kind exchange when you buy down, for example. If you purchase a house at a lower price than you sold your original house for, that automatically creates a capital gain that's recognized immediately. But you can potentially get a partial deferral. But we'll get into that later. To keep things simple, I leave the closing costs and depreciation out of the examples. The depreciation recapture--if you rent the property out you're recognizing the depreciation over the years--can also be deferred along with your capital gains and certain types of closing costs can be built into some basis as exchange costs. But I want to stick to just the basics here to give you a solid understanding of what you would need to do to move forward with a like-kind exchange. In the first case study, I give you a basic example of a full exchange, in which the full capital gain is deferred. I go over the normal 1031 exchange where you purchase a new property for the same price or more than the one you sold. In this case, the profit you realized from the sale of the first property is deferred. In the second example, I use essentially the same numbers as in the first, except that in this example, you decide to take out a mortgage on the new property. In this case, you can only do partial deferment. The third and final example is the buy down. In this case you do have to recognize the difference between higher sale price of the first property and lower purchase price of the new one. This amount is taxable and can not be deferred, so this is an example of a partial deferment. Like-kind exchanges are actually pretty complicated in the real world, but I just wanted to give you some basic information for now. I may show you some more complex transactions in the future because I know that anything tax related is never as basic as the examples you are shown. But this video will at least give you an idea of what you need to do and what you need to look out for with a like-kind exchange to defer the full capital gains tax, or as much as possible, when you are buying and selling real estate. Please share this video about Like-kind exchanges: http://www.youtube.com/watch?v=MUy8cwTo_Us Subscribe to my Channel: http://www.youtube.com/subscription_center?add_user=EvanHutchesonCPA Follow Me: http://www.facebook.com/EvanHutchesonCPA http://twitter.com/Nashville_CPA http://plus.google.com/+Evanhcpa/about http://www.linkedin.com/in/evanhutchesoncpa/
1031 Tax Exchange ~ Great Way To Defer Capital Gains Taxes
As promised....the 1031 tax exchange IRS rule...very briefly explained. Buy Up, Mortgage Up, Spend All The Money. One of the big things to remember for anyone that has investment property that wants to sell but is worried about capital gains taxes. The 1031 tax exchange that has been around since the 1920's may be a good option for you. There are a LOT OF RULES that you must follow. You can't touch the money...at all, nope. You will pay taxes if you don't exchange for exactly the same monetary value or up in value. Do it wrong? You'll pay taxes. Get a 1031 tax exchange specialist to hold your funds til you find the replacement property. 45 days to identify...180 days to close....sort of. See, you must know the rules. To avoid paying taxes in an investment property without using the 1031? Move into it for a couple years, then take the 250/500k exclusion. Talk to your tax person, financial planner too. They will know your situation best and what options you have! ~ Lauren Lefkowitz Greber ~ Realty Executives Valencia ~ [email protected] ~ (661) 964-1610 x3317
Views: 153 WitzRealEstate

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