client@epiphaniesinc.com.
Best regards
Allen Voivod
http://www.epiphaniesinc.com
Avoid Capital Gains Taxes - Legally! - With the 1031 Exchange
If someone told you about a perfectly legal way to sell
your investment property without paying a single dime in
taxes on the proceeds, would you think it's too good to be
true?
It's not. The 1031 Exchange is not only the real deal, it's
being used more and more by people selling their investment
property in the White Mountains region. One local real
estate agency is stepping up their efforts to educate
property sellers (and buyers) about the 1031 Exchange, so
named after the IRS tax code section where it appears.
"It's also referred to as the 'Starker' or 'like-kind'
exchange," says Stephen Loynd, Managing Broker at Alpine
Lakes Real Estate's Lincoln office. "Put simply, if you
sell property, you can defer taxes indefinitely if you use
the proceeds to buy a similar property of equal or greater
value."
Like most things involving the IRS, Loynd suggests being
prepared in advance is critical to making the transaction
work out right. The IRS has specific time limitations that
must be followed, so it's best to plan for the 1031
Exchange before putting a property on the market.
"You need a company to serve as what the IRS calls 'a
qualified intermediary' (QI) to take advantage of the
1031," says Loynd. "We're not allowed to act as a QI for
our clients - legally, you need a separate company from
your real estate broker to act as a QI for a 1031 exchange.
But we've worked with a number of QIs on behalf of our
clients, and it's a fairly simple process. It works a bit
like escrow - the seller never receives the actual cash
from the property sale. Instead, the QI holds the proceeds
of your sale.
"After the sale, you have 45 days to find a property to
buy. Then you have 180 days to close on the property. It
really is that simple," explains Loynd. "But the IRS is
very strict about the 45-day and 180-day deadlines, so we
always recommend that sellers talk to their tax advisors
before they start the process."
Because of the increased interest they've seen in 1031
Exchange real estate transactions, Loynd plans to take
further steps to educate interested sellers and buyers
about the 1031 Exchange. "It's a great opportunity to defer
taxes indefinitely on qualified real estate transactions,
and we want to make sure our clients, friends, and
neighbors in the White Mountains know it's available to
them."
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Alpine Lakes Real Estate has been building long-term
relationships in the White Mountains region for more than
20 years. Their extensive real estate expertise is enhanced
by their vast knowledge of the entire building process.
With offices in Lincoln and Campton, NH, they also offer
assistance with IRS 1031 "like-kind" exchanges, and the
Design-Build services of their in-house architect. For more
information, go to http://www.AlpineLakes.com .
