San Diego commercial brokers
Great real estate and commercial properties, check out the San Diego Area. Contact a San Diego commercial brokers who can guide you toward more profits taking advantage of the 1031 exchange.
The 1031 Exchange, (the name comes from the Internal Revenue Code Section # 1.103) is a code that can end up saving individuals money on certain business and investment property transactions. ‘Profit or Capital Gain’ taxes must be paid on personal property and real estate if any profits were made. There might be an exception, however.
The 1031 Exchange law allows sellers of some real estate and personal property to be exempt from paying the ‘capital gains’ taxes if they are “exchanging” the property they sell, for a new property of “like-kind”. This code only applies to business property and investment property.
An example would be selling a property which had been used as an warehouse, and then buying a similar property to be used for the same purpose.The profits made on the sale will not be taxed. It isn’t necessary that the new property doesn’t have to be the same size or type, as long as it is going to be used for the same purpose as the one sold.Keep in mind that property bought for investment purposes can be sold to buy a different property for investment purposes, without taxing the profit. The broad definition of exchanging for a “like-kind” property allows for flexibility.
There are many time factors to be considered. The purchase of the new property must happen within 180 calendar days of the sale of the original property.It can often be more financially efficient to make the sale and purchase as close in time as possible. The 1031 law does require that a qualified intermediary be used after 45 days of the sale to ensure that the gains are used towards the purchase of the new property. This will prevent some individuals from using the profit for their financial gain.
Related posts:
- Capital Gains Tax Bracket for 2009, 2010
- How To Buy Investment Real Estate
- Concepts To Realize For Your New Property Purchase Online
- Profiting From Real Estate in Depreciating Towns
- Getting into Foreign Exchange Currency Trading
Tags: 1031 Exchange, Business Property, Calendar Days, Capital Gain Taxes, Capital Gains Taxes, Commercial Brokers, Exchange Law, Financial Gain, Flexibility, Internal Revenue Code, Internal Revenue Code Section, Investment Property, Investment Purposes, Personal Property, Profits, Property Transactions, San Diego Area, Section 1, Selling A Property, Time Factors
