
Closing Costs & 1031 Exchanges
When engaging in a 1031 Exchange, understanding the intricacies of closing costs and how they impact your transaction is crucial. This process offers substantial tax
When engaging in a 1031 Exchange, understanding the intricacies of closing costs and how they impact your transaction is crucial. This process offers substantial tax
When an asset is sold for more than its adjusted tax basis, the amount exceeding the basis is recognized as“gain” and is taxed at the
In a standard “forward” or “deferred” 1031 exchange, a taxpayer defers capital gains taxes by exchanging property (“relinquished property”) for like-kind property of equal or
When purchasing real estate, buyers typically include an earnest money deposit with their offer to the seller. The deposit may be refundable or non-refundable, depending
When engaging in a 1031 Exchange, the taxpayer must identify their replacement property(ies) within 45 days of closing on the sale of their relinquished property.
Under Internal Revenue Code Section 1031, exchange of “stock in trade or other property held primarily for sale” will not qualify for tax deferral. Consequently,
IRS Code §1031 clearly states that for a property to qualify as a tax deferred exchange during a transaction, it must be “held for investment.”