Seller Financing Section 1031 of the Internal Revenue Code (IRC) permits you to sell your investment property, called Relinquished Property, and defer taxes on your Capital Gains and Depreciation Recapture, if you purchase another investment property, called your...
Category
Replacement Property
5 articles
What Is the Required Holding Period for Investment Property in a Section 1031 Exchange?
Yes, despite what you read on the blogs and real estate forums, there is a statutory Holding Period requirement for Section 1031 property. In fact, there are two. And they are different. 1031 Relinquished Property Section 1031 does not identify a specific number of...
With a Section 1031 Exchange, Can I Buy Another Investment Property First, and Then Exchange the One I Already Have for It?
Overview A Reverse 1031 Exchange is the same as a Delayed 1031 Exchange, except that the Exchangor does things backwards. He purchases the Replacement Property before he sells the Relinquished Property. That’s why it is called a Reverse 1031 Exchange. The problem with...
How Do I Handle the Personal Property in a Section 1031 Exchange?
Overview Almost every investment property that you buy or sell comes with more than just the real estate. A rent house has a stove and a refrigerator. A Duplex has window units and a water heater sitting on the floor. An apartment building has laundry equipment,...
What Is the “Free Money” Referred to by Real Estate Investors?
Free Money Using Section 1031 to defer the payment of Capital Gains taxes is like getting the free use of the IRS’s money for as long as you own the new investment property that you bought with it. Free Money Times Four And not only that, but you can use the IRS’s...