Understanding Different Like-Kind Exchange Processes

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The 1031 exchange can be an effective tax-advantaged tool for selling investment real estate, buying more, and potentially deferring taxes on capital gains and depreciation recapture. But there is more than one way to execute—and complete—a like-kind exchange.

Feb 12, 2025

Understanding the 1031 Exchange Debt Rules

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An effective 1031 exchange means you could defer paying taxes on capital gains and depreciation recapture on the sale of investment property used for business or investment purposes. The key to success involves understanding and following multiple regulations, including those involving debt.

Feb 11, 2025

Using an Installment Sale with a 1031 Exchange

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One tax-deferral strategy that can be useful when selling investment real estate is the 1031 Exchange. Through this, you sell your relinquished property and then put the proceeds into a replacement property (with help from a Qualified Intermediary). When successful, you can defer capital gains and depreciation recapture taxes generated from the sale of your property.

Feb 10, 2025

The Pros & Cons Of Using An Occupied Duplex In A 1031 Exchange

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You might own an investment property that you’re ready to sell. Perhaps you want to “trade up” to another real asset with a potentially better cash flow. Or you might want to invest in a property offering potentially higher appreciation.

Feb 9, 2025

What Is The Waiting Period Of A 1031 Exchange?

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A 1031 exchange can be a powerful tool for investors who want to postpone paying capital gains and depreciation recapture taxes on the sale of investment real estate. However, a successful like-kind exchange requires following stringent deadlines to avoid triggering a taxable event. Understanding the timing involved is essential to ensure a successful exchange.

Feb 8, 2025

How do I Report a 1031 Exchange to the IRS?

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When completed properly, a 1031 Exchange can help defer capital gains and depreciation recapture taxes from the sale of real estate used for investments or business purposes. However, following the proper procedures is only part of the story. Reporting the exchange on your annual tax return is essential when complying with the IRS’ like-kind exchange regulations.

Feb 7, 2025

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