We hope these websites make your loft search ten times more fun and enjoyable. Get a free list of Mills Act historic lofts, condos and single family homes with styles character and significant property tax benefits. Fill out the online form:
REAL ESTATE NEWS (Los Angeles, CA) — Section 1031 of the U.S. Internal Revenue Code 26 U.S.C. § 1031 allows for the exchange of certain types of property, allowing the investor to defer the recognition of capital gains or losses due upon sale, and to defer the capital gains taxes.
The 1031 exchange (also called a like-kind exchange or a Starker) is a swap of one business or investment asset for another. Although most swaps are taxable as sales, with a 1031, there will be no tax or limited tax due at the time of the exchange. This allows the form of the investment to be changed without (as the IRS sees it) cashing out or recognizing a capital gain. That allows the investment to continue to grow tax deferred. The new property must be found within 45 days of old property escrow close. The new property escrow must close within 180 days after the sale of the old property.
President Biden has proposed limits to 1031 exchanges, which would have consequences for investors, and for the economy. If the proposal is approved, the most savvy of wealthy investors would likely respond by holding on to property, with the expectation that the tax code will change again in the future.
Get a free list of the top ten 1031 Exchange investments. Fill out the online form:
