(719) 287-1049

ERA Herman Group Real Estate

Serving Colorado Springs

Calling all Colorado Springs real estate investors — do you understand 1031 tax exchanges?

Are you a Colorado Springs Real Estate Investor?

Every real estate investor needs to have a exit plan — What happens when you want to sell your investment property?

  • What if you have completely depreciated out your investment property?
  • What if you have moved, and want to sell a property and purchase one in a different area?
  • What if you want to sell your investment rental home and buy a fourplex?
  • And the most important question, what if you want to sell and not pay the taxes when you sell?

A 1031 Tax Exchange may be the answer

What is a 1031 exchange?

  • The easy way to explain it, it’s is a swap of one business or investment asset for another.  You can sell one  investment property and purchase another.uid 1611147

Why do a 1031 exchange?

  • You can defer taxes on a investment property until you actually sell for cash many years later

Why is it called a 1031 tax exchange?

  • It’s named after the section in the I.R.S. tax code, 1031

Where can I find out more info?

  • Here’s the link the some info on the IRS web site.  Also, talk to your tax accountant.

What types of properties do and don’t qualify for a tax exchange?

  • Personal Homes, vacation homes that aren’t held as rentals don’t qualify
  • Another investment property does qualify

Is there a timeline for the tax exchange?

  • Yes, there are very specific rules and regulations, per the IRS guidelines, that must be met.   These dates include the Identification Period, and the Exchange Period.

CONSULT A TAX EXPERT FOR ALL OF THE DETAILS AND TO SEE IF YOUR PERSONAL SITUATION IS A GOOD FIT FOR A 1031 TAX EXCHANGE.

 

It’s also very important that the Realtor you are using understands the 1031 tax exchange, and the timing involved in identifying and purchasing a property.

Related Articles:

 

blue-and-black-light-bulb-thAre you ready to step up to the most comprehensive data available about Colorado Springs and the surrounding area?

Then subscribe to the Colorado Springs real estate blog free by clicking here.    Get the best coverage on the Colorado Springs Real Estate market delivered right to you!

For even more information, contact Kathy Torline by calling or texting 719-287-1049, or email [email protected]

Be Sociable, Share!