Thursday, June 02, 2005
WHY a 1031 Exchange Can Benefit YOU
If your plans include using the money from the sale of a business or investment property to buy more of the same, a 1031 Exchange provides greater proceeds for your next investment-more than you could gain through the re-investment of after-tax proceeds.
So...A 1031 Exchange is not a tax loophole. It is a section of the Internal Revenue Code, written by Congress, to allow anyone who meets all the requirements to sell their property and defer paying taxes on the gain. ...and you must reinvest all cash proceeds from the sale, and purchase a new property or properties of equal or greater value, in order to avoid taxation on the gains.
Also...You cannot have actual ("constructive") control of any of the proceeds received from the sale of the old property.
This means that....By law, all money is held by a Qualified Intermediary (also referred to as an Accommodator or Facilitator - (there's a PROFESSIONAL list waiting for you at my office)...
BTW...You cannot have an associate or employee, your attorney, broker or CPA hold the proceeds, nor can you leave the proceeds in escrow until the second property is purchased.
DETAILS?? Go here: http://www.janeanne.com/resources.asp
So...A 1031 Exchange is not a tax loophole. It is a section of the Internal Revenue Code, written by Congress, to allow anyone who meets all the requirements to sell their property and defer paying taxes on the gain. ...and you must reinvest all cash proceeds from the sale, and purchase a new property or properties of equal or greater value, in order to avoid taxation on the gains.
Also...You cannot have actual ("constructive") control of any of the proceeds received from the sale of the old property.
This means that....By law, all money is held by a Qualified Intermediary (also referred to as an Accommodator or Facilitator - (there's a PROFESSIONAL list waiting for you at my office)...
BTW...You cannot have an associate or employee, your attorney, broker or CPA hold the proceeds, nor can you leave the proceeds in escrow until the second property is purchased.
DETAILS?? Go here: http://www.janeanne.com/resources.asp
