By Gail Liberman
Sunday, June 19, 2005
Looking for a way to sell an investment property yet defer capital gains? The key could be a "1031 exchange."
Under Section 1031 of the Internal Revenue Code, investment property owners can defer payment of capital gains taxes by "exchanging" the property for another investment property of equal or greater value.
Conditions: The investor generally must identify the replacement property within 45 days of the sale of the old property and acquire the new property within 180 days. Partnerships are ineligible.
Now, new types of private placement deals are making 1031 exchanges easier. Known as Tenant-in-Common 1031 Exchanges, these deals, estimated already to have attracted some $4 billion, sprang from a landmark March 2002 IRS ruling.
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June 19, 2005
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» Avoiding Capital Gains on Your Primary Residence- 1031-121 EXCHANGE from NestEgg Personal Real Estate Investing Blog
1031-121 EXCHANGE Under Section 121, you can sell your primary residence and exclude from taxable income up to $250,000 (single taxpayers) or $500,000 (married taxpayers filing jointly) in capital gains A 1031-121 exchange allows the owner of, for exam... [Read More]
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The 1031 TIC transaction is actually is a great way to defer/ avoid capital gains. It's important, though to pick the right 1031 firm. I put together research to help people decide on a firm:
http://www.1031-tic-exchange.net/
Posted by: Jim | February 03, 2007 at 11:06 PM