1031 Exchange Video: When buying another property, know about this option
April 19th, 2011 categories: 1031 Exchange, Buyer Strategies, Seller Strategies
If you are considering buying another property in or out of the Northern Virginia area, you should be aware of the 1031 Exchange process.
It enables the selling of one property and the buying of another with very significant tax advantages if you quality and meet the required legal criteria.
Watch video for an intro to 1031 Exchange.
If you are a Chantilly or Northern Virginia area investor, or simply a home owner who wants to know about options, you should know about 1031. In partnership with one of our Real Estate in Chantilly blog writers, real estate attorney John Pitrelli, we have produced an informative video introduction to the 1031 option. Take time to watch this introduction. You should at least know that this is an option, and many people have used it to their advantage.
Check it out at our Video Center where you may also find other resources that will be helpful.
If you are buying and/or selling property in the Northern Virginia area, or moving to the area, we are here for you!
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THE TAX DEFERRED EXCHANGE – AN INVESTOR’S SAVING GRACE
July 3rd, 2008 categories: 1031 Exchange, Buyer Strategies, Seller Strategies
[NOTE: Drawing on several decades of experience as a real estate attorney, John Pitrelli contributes articles of interest for home buyers and home sellers. To view John's other posts please click here.]
A 1031 or tax deferred exchange is a method by which a property owner trades one investment property for another property, without having to pay any federal income taxes as a result of the transaction.
To take advantage of 1031 you must own the property for investment or business purposes. Typically residential rental property or commercial property will meet this requirement. The property does not have to be improved (raw land can qualify). However, certain individuals or companies will not qualify if they are considered by IRS to be “dealers”. For example, if you are a builder and own the property strictly for resale, such as a builder’s inventory of new homes, you will be considered a dealer. Also, if you buy property with the intention of reselling it quickly (”flipping” the property) you may likewise be treated as a dealer and ineligible for a 1031 tax deferred exchange. If you own your property as a second home or use it personally for more than two weeks per year, you will be unable to utilize a 1031 exchange for that property. Read the rest of this entry »
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