For those lucky investors that wisely bought a preconstruction condo a year or so ago, or if you are soon to realize a profit from any kind of real estate transaction, it may be very smart to find out about your tax liabilities and investigate doing a 1031 tax exchange .
This is another area that the folks at the Myrtle Beach Condo Store have expertise in. David O'Connell can advise and set up a Tenants in Common program or self directed IRA and save you on capital gains taxes in a big way.
Below is the information on 1031 exchanges from the IRS.org website. I urge anyone who has realized a large profit from preconstruction investing to look into this.
Fill out the contact form on the Myrtle Beach Condo Store website and mention 1031 exchange in the comments section.
www.myrtlebeachcondostore.com
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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.
If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized.
Section 1031 does not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness, or certain other assets.
Like-Kind Property Properties are of like kind if they are of the same nature or character, even if they differ in grade or quality. Personal properties of a like class are like-kind properties. However, livestock of different sexes are not like-kind properties.
Also, personal property used predominantly in the United States and personal property used predominantly outside the United States are not like-kind properties.
Real properties generally are of like kind, regardless of whether the properties are improved or unimproved. However, real property in the United States and real property outside the United States are not like-kind properties.
Additional Resources
Publication 544, Sales and Other Dispositions of Assets (PDF)
Form 8824, Like-Kind Exchanges (PDF)
Labels: 1031 Tax Exchange |
