{"id":6923,"date":"2018-03-19T05:21:13","date_gmt":"2018-03-19T05:21:13","guid":{"rendered":"http:\/\/themes.radiantthemes.com\/constructionpress\/?page_id=309"},"modified":"2022-12-19T08:48:05","modified_gmt":"2022-12-19T13:48:05","slug":"1031-exchange","status":"publish","type":"page","link":"https:\/\/tbrealtor.com\/ko\/additional-service\/1031-exchange\/","title":{"rendered":"1031 Exchange"},"content":{"rendered":"
Taxes rarely make for exciting reading material, but if you own an investment property, there\u2019s at least one set of IRS regulations you absolutely will want to understand: 1031 Exchange Rules. Real estate investors like you have the option of using a 1031 Exchange. Most investors find it to be a useful instrument for reducing capital gains and other taxes on their earnings.<\/div>
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Why? Because normally when you sell an investment property for more than what you paid for it, you\u2019d have to pay a hefty capital gains tax. But with a\u00a01031 Exchange<\/strong>, you get to defer paying those taxes if you reinvest the proceeds in a new property, making an \u201cexchange\u201d rather than a sale.<\/p>\n

As an investor, you can benefit from deferring the tax liability associated with the sale of real estate through a 1031 exchange. However, there are strict regulations and guidelines to be aware of that dictate what constitutes a valid exchange. Several rules need to be followed while doing a 1031 exchange. Rules related to tax implications and time frames may be problematic. If you’re considering a 1031 exchange, here is what you should know about all the rules.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><\/div><\/div>\n\t

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If you decide to do a 1031 exchange, once the money from the sale of your first property comes through, it will be held in escrow\u2014an independent account monitored by a third party. You won\u2019t be able to access the money until you close on a new property. Note that you’re not allowed to use the money from the 1031 property exchange for anything else.<\/p>\n

You can’t sell two commercial 1031 Exchange properties, do two quick fixes and flips and then roll the proceeds into a new apartment building. The money from the first transaction will be held by a qualified intermediary who acquires the replacement property for the taxpayer. And this is fine, provided you follow a few more rules.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><\/div><\/div>

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<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"Taxes rarely make for exciting reading material, but if you own an investment property, there\u2019s at least one set of IRS regulations you absolutely will want to understand: 1031 Exchange Rules. Real estate investors like you have the option of using a 1031 Exchange. Most investors find it to be a useful instrument for reducing [...]","protected":false},"author":2,"featured_media":7041,"parent":5944,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-6923","page","type-page","status-publish","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/tbrealtor.com\/ko\/wp-json\/wp\/v2\/pages\/6923","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tbrealtor.com\/ko\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/tbrealtor.com\/ko\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/tbrealtor.com\/ko\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/tbrealtor.com\/ko\/wp-json\/wp\/v2\/comments?post=6923"}],"version-history":[{"count":0,"href":"https:\/\/tbrealtor.com\/ko\/wp-json\/wp\/v2\/pages\/6923\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/tbrealtor.com\/ko\/wp-json\/wp\/v2\/pages\/5944"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tbrealtor.com\/ko\/wp-json\/wp\/v2\/media\/7041"}],"wp:attachment":[{"href":"https:\/\/tbrealtor.com\/ko\/wp-json\/wp\/v2\/media?parent=6923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}