1031 Exchange Rules

REAL ESTATE NEWS (Los Angeles, CA) — California investors often find themselves owing hundreds of thousands of dollars when they sell an investment property. Investors want to avoid paying big taxes, which can often total 33%, when they sell a property to buy another property. A 1031 Exchange is therefore quite possibly the best investment wealth building tactic for real estate investors today, because the IRS Internal Revenue Code section 1031 rule allows those taxes to be deferred.

While the rules say that they must be of “like-kind” properties, they don’t actually need to be the exact same kind of property. There’s plenty of flexibility. 1031 Exchange works for different types of properties, so long as they are in the United States, and the property is a long-term holding investment, not quick-flip inventory. Two single family homes can be sold to buy one large loft condominium, or even to purchase just a fraction of a large group investment. The purchased property must be worth at least at much as the sold investment. For maximum tax benefits and reduced change of IRS audit, the owner should hold the property for at least two years. It’s ok to have rental tenants during that time, and it’s also ok to use the property for personal use for up to 10% of the time.

The investor must spend all of the cash from the property sale, towards the down payment to buy a property of equal or greater value. Within 45 days of filing initial paperwork for the 1038 exchange, the investor must submit a list of all of the properties that are under consideration for purchase. The investor may choose to specify three properties, or the investor may specify as many properties that total less than $2 million or 200% of the value of the sold property. The investor must complete the exchange and close on the replacement property within 180 days.

The IRS requires investors to use an exchange accommodator, a third party that takes an active role in the transactions that turn a sale and purchase into an exchange. The intermediary facilitates the transaction, acts as a legal straw buyer, provides consultation, does the paperwork and ensure IRS compliance.

How a Landlord can Retire: The DST

How to retire from being a landlord: When a landlord has had enough of managing properties, they can reduce their workload to more of a passive income by using a 1031 Exchange to buy into a DST

. This is ideal for investors who want zero responsibility for the selection and management of property. These DSTs are commonly diversified by split into different baskets, such as: apartments, self-storage buildings, Amazon distribution centers and medical offices.

Get a free list of 1031 exchange accommodators, agents, lenders or DSTs. Fill out the online form:

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Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Reali, Inc  DRE 01889449. This is not an offer to buy or sell securities. All investments involve risk, including possible loss of principal. All information provided is deemed reliable but is not guaranteed and should be independently verified.  This does not constitute financial advice. For financial advice, consult a certified financial advisor, tax adviser, CPA and 1031 exchange accommodator.  We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com  Licensed in California.  Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker. 

Investing in Quantum Computers

Real estate may be stagnating at the moment, but it will eventually shoot up again, especially oceanfront properties in Sunny California. Although real estate has an inherent advantage in that everyone needs it, its not the fastest growing investment or best producer of Return On Investment. The latest technologies tend to deliver the most Return on Investment. This includes cryptocurrencies, blockchain, AI Artificial Intelligence and Quantum Computers. Quantum Computers are in their infancy, but have solidly proven where they are going. They’re going to be able to process data about 1 billion to 1 trillion times faster than modern day supercomputers, particularly for profitable functions such as optimization. Currently, it would take billions of years to accurately calculate all of the most accurate routes for postal carriers, delivery companies etc. Quantum computers can calculate the most efficient routes, looking at billions of possible route sequences, in mere seconds.

Technology has been beating other sectors for many decades. Bitcoin has grown in value by more than 5 million percent in 12 years. That’s some rapid growth.

Some investors understand how valuable data processing and optimization are for business, government and science. For those, among the most savvy investors of all time, here’s a list of quantum computer companies, many of which accept investments in various forms. Do some research, give them a call, buy some stock or make a deal with these quantum computer hardware, software and services, products and services companies:

1QBit — Software

Braket SDK – Part of Amazon AWS quantum services — https://docs.aws.amazon.com/braket/?id=docs_gateway

Cirq – Quantum computer software, part of Google Quantum AI’s operations — https://quantumai.google/cirq

D-Wave – Quantum computer systems and software

Forest – Quantum computer software – Part of Rigetti — https://medium.com/rigetti/introducing-forest-f2c806537c6d

IBM Quantum — Computer systems

IONQ – Trapped Ion Computers and Software — https://ionq.com

Ocean Developer Tools – Part of D-Wave — https://www.dwavesys.com/solutions-and-products/ocean/

Q Experience – Part of IBM Quantum — https://quantum-computing.ibm.com

Rigetti — Quantum computer systems

Riverlane Deltaflow.OS® — Software for quantum computers

More at :

https://en.wikipedia.org/wiki/List_of_companies_involved_in_quantum_computing_or_communication

https://aimultiple.com/quantum-computing-companies

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.