5,583,278
nothing is "simple" with a 1031 exchange....
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Tony and Suzanne Marri...
Scottsdale, AZ
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Debe Maxwell, CRS
Charlotte, NC
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Mary Yonkers
Erie, PA
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Fred Griffin Florida R...
Tallahassee, FL
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Brian Burkhalter
Draper, UT
809,258
Investor sells a property, can't touch the money, has a qualified intermediary hold the money while they look for a replacement property or properties to spend the funds on, they have 45 days to identify replacement propert(ies) and 180 days to close. If they follow the laws and do things properly they sell a property, buy a property and defer paying capital gains taxes on it. Here is a good, concise link for more info http://www.pioneer1031.com/exchanges/delayed-exchange.php. Find a 1031 company/attorney in your area/state for more info. -Kasey
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Michael Setunsky
Woodbridge, VA
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Debe Maxwell, CRS
Charlotte, NC
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Mary Yonkers
Erie, PA
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Fred Griffin Florida R...
Tallahassee, FL
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Brian Burkhalter
Draper, UT
2,684,009
Internal Revenue Code Section 1031 cannot be "simplified". You are dealing with the Internal Revenue Service.
Find a good local qualified Intermediary to send your clients to (ask your Title Company or Title Attorney for the name of someone in your area). Let that qualified Intermediary explain it to your investor clients.
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
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Mary Yonkers
Erie, PA
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Dorie Dillard Austin TX
Austin, TX
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Brian Burkhalter
Draper, UT
5,772,575
Brian,
There is someone in your market that does them. Contact them, buy them lunch and have them explain it. That is how we did it. To explain it would take several pages. You will learn more face to face. A
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
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Mary Yonkers
Erie, PA
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Brian Burkhalter
Draper, UT
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Fred Griffin Florida R...
Tallahassee, FL
6,393,404
I think that Ken Jones has a post of two that simplifies this. But if I were setting one up I would go to a pro for the first one or more.
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Debe Maxwell, CRS
Charlotte, NC
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Mary Yonkers
Erie, PA
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Brian Burkhalter
Draper, UT
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Fred Griffin Florida R...
Tallahassee, FL
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Bob Crane
Stevens Point, WI
3,345,091
Simplify?
I suggest you google it and get an education on how 1031 exchanges work.
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
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Mary Yonkers
Erie, PA
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Fred Griffin Florida R...
Tallahassee, FL
2,220,323
There is nothing simple about 1031 exchange.
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Debe Maxwell, CRS
Charlotte, NC
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Mary Yonkers
Erie, PA
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Fred Griffin Florida R...
Tallahassee, FL
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Anthony Acosta - ALLAT...
Atlanta, GA
1,239,901
tax deferment...
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Debe Maxwell, CRS
Charlotte, NC
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Mary Yonkers
Erie, PA
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Fred Griffin Florida R...
Tallahassee, FL
5,005,642
Thank you Fred Griffin ..good answer!
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Debe Maxwell, CRS
Charlotte, NC
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Mary Yonkers
Erie, PA
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Fred Griffin Florida R...
Tallahassee, FL
5,049,158
It can get kinda complicated and there are some very specific IRS rules. I would hook up with a 1031 exchange company to get the scoop
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Debe Maxwell, CRS
Charlotte, NC
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Mary Yonkers
Erie, PA
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Fred Griffin Florida R...
Tallahassee, FL
3,988,007
I suggest you find a local attorney or escrow agent that will sit down with you and explain the mechanics of 1031. It will not work in every situation or for everyone. There are certain time constraints. property types and reinvestment criteria that must be met. It has to be exact to qualify.
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Debe Maxwell, CRS
Charlotte, NC
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Mary Yonkers
Erie, PA
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Fred Griffin Florida R...
Tallahassee, FL
613,494
I love 1031 exchange because the buyer is on a time crunch and is not going to drive you crazy being picky.
This is ONLY for investors who want to delay paying taxes on the profit of the investment property sale. So they take the profit from the property sale and re-invest it into another investment property. (this is not for owner occupant property)
They have 45 days to pick a replacement property(s) and 6 months to close on it. They can also buy more than one property with the profit money. IF the investor wants to pocket some of the money instead of re-investing in another property, they simple pay taxes on what they keep.
Investor can either pay cash for the new property and/or get a loan. If they had a loan on the first property, in order not to pay taxes they need to use all the profit money and a loan equal to (or more than) the last property. (or they get taxed on the difference).
Simple answer is that it is a way for an investor to keep rolling the profit on an investment sale into a more expensive property while defering paying the taxes.
Eventually when they do sell outright, they will need to pay taxes.
Eve
PS: It is not difficult. Once you do one, it is easy.
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Debe Maxwell, CRS
Charlotte, NC
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Mary Yonkers
Erie, PA
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Fred Griffin Florida R...
Tallahassee, FL
1,231,853
Impossible to simplify as others have said
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John Pusa
Glendale, CA
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Debe Maxwell, CRS
Charlotte, NC
4,160,412
Brian Burkhalter Many good answers already.
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Debe Maxwell, CRS
Charlotte, NC
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Mary Yonkers
Erie, PA
921,504
That is like asking someone to explain what potatoes taste like.
Do one.
Everything becomes simple when you know the answers.
You learn by doing.
Eat a potatoe or do a 1031, then it all becomes more simple.
Just do it already. You have a broker! What are you paying your broker for?
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Mary Yonkers
Erie, PA
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Fred Griffin Florida R...
Tallahassee, FL
1,712,676
You need to take a class because you can't simplify it.
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Debe Maxwell, CRS
Charlotte, NC
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Mary Yonkers
Erie, PA
2,781,173
The best source for this is google or the pro...everything else is an opinion
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Mary Yonkers
Erie, PA
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Brian Burkhalter
Draper, UT
4,882,355
I have a 4 page document prepared by a QI company. Give me your email and I will send you a copy.
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Mary Yonkers
Erie, PA
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Fred Griffin Florida R...
Tallahassee, FL
3,770
I know their are post and videos i looked at them. I need it in everyday english and if you cant be respectful please dont respond.
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Mary Yonkers
Erie, PA
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Bob Crane
Stevens Point, WI
4,319,419
Brian Burkhalter - the best person to answer this would be Ken Jones ...
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Praful Thakkar
Andover, MA
5,230,062
Great explanation, Kasey & John Boles! I just Closed on one and we were in just under the 45-day wire!
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John Pusa
Glendale, CA
3,986,258
1031 is not a big deal...hire a competent company to work with and it can be very simple
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Debe Maxwell, CRS
Charlotte, NC
1,502,998
Simplified version: Sell one investment property, use the proceeds to purchase X investments.
Example: Sell one rental property and buy two more, or a commercial building, or stocks, or an offshore oil rig, or a company, or .... so long as it is a qualified investment and the 1031 administrator signs off on it.
5,104,931
This can be an entire chapter in a book. If you google the concept, you'll get lots of answers. Why don't you do a bit of research and write a blog post about what you learned that could help others like yourself.
7,836,134
Read the IRS regulations. You need to have a good lawyer and a CPA on your team.
1,157,785
1,466,207
Brian Burkhalter There is no simple answer. You really have to know what you are doing. An intermediary is a must. Kasey & John Boles has a good answer.
1,617,916
1,725,996
As others have noted already and something that, if you have never done, you should rely on the direction of your managing broker to assist you through the process. To do less is an Ethics Violation.
5,216,398
Contact a local qualified intermediary for a tutorial session. Use them to make sure it goes smoothly!
4,800,082
3,071,489
4,434,127
1,543,672
sell tax free when you exchange the property for another like or better property or many properties equal to or better than the gain.