 1032 Exchanges (by Julie [OH]) Apr 2, 2017 6:29 AM
 1032 Exchanges (by Julie Wise [OH]) Apr 2, 2017 6:30 AM
1032 Exchanges (by Jim in O C [CA]) Apr 2, 2017 7:00 AM
1032 Exchanges (by LindaJ [NY]) Apr 2, 2017 7:16 AM
1032 Exchanges (by BillS [CO]) Apr 2, 2017 7:37 AM
1032 Exchanges (by tryan [MA]) Apr 2, 2017 12:19 PM
1032 Exchanges (by Julie [OH]) Apr 2, 2017 12:39 PM
1032 Exchanges (by Ray-N-Pa [PA]) Apr 2, 2017 4:20 PM
1032 Exchanges (by Emily [TX]) Apr 3, 2017 6:42 AM
1032 Exchanges (by Robin [WI]) Apr 3, 2017 12:24 PM
1032 Exchanges (by Julie [OH]) Apr 3, 2017 1:12 PM
1032 Exchanges (by Emily [TX]) Apr 4, 2017 6:28 AM
1032 Exchanges (by Robin [WI]) Apr 4, 2017 6:49 PM
1032 Exchanges (by Julie [OH]) Posted on: Apr 2, 2017 6:29 AM
Message:
Can someone please explain how a 1031 Exchange works in laymens terms?
Were thinking about selling our 12 unit apartment bldg that we've owned for 10 years. We have basically been do it yourself LL's. My husband is 67 and wants some time off. We live here as well which may be part of the problem.
Thanks in advance!
--162.235.xx.xxx |
1032 Exchanges (by Julie Wise [OH]) Posted on: Apr 2, 2017 6:30 AM
Message:
1031 Exchange of course! --162.235.xx.xxx |
1032 Exchanges (by Jim in O C [CA]) Posted on: Apr 2, 2017 7:00 AM
Message:
It is an exchange of like kind property. In 1989 I exchanged my $165K property for a $235K property to avoid selling and paying capital gains plus depreciation recapture. It's CPA time to see what your options are. --108.196.xxx.xxx |
1032 Exchanges (by LindaJ [NY]) Posted on: Apr 2, 2017 7:16 AM
Message:
It is a deferral of the taxes you have to pay. You cannot take the money in hand and you have a time period to identify and then roll the money into a like kind property. If you purchase a more expensive property, you just go on renting, if the property is less expensive and you take the leftover amount, you pay taxes on that amount.
The key here is you will still own rental property, maybe a different one, but you still deal with managing or hiring someone to manage and you will pay the taxes in the future if you sell it later. (maybe at a lower or higher rate) If it is part of your estate, at the time you die, the cost basis is changed to your heirs, so they may get away with not paying taxes. --108.44.xx.xx |
1032 Exchanges (by BillS [CO]) Posted on: Apr 2, 2017 7:37 AM
Message:
The key to a 1031 exchange is to buy a property with less headache. Some people like triple net lease properties (aka NNN) for 1031 exchanges. Lots less headache than residential apartments but lower returns as well. You can also consider exchanging into a commercial property managed professionally. Many ways to go but it's a challenging transition with hard deadlines and many moving parts.
Have you considered owner carry? That can be a way of moving out of management and still protection income. --172.58.xx.xx |
1032 Exchanges (by tryan [MA]) Posted on: Apr 2, 2017 12:19 PM
Message:
"Like kind" is VERY loose ... I did a duplex in the hood for waterfront land in the country. Built on the land. So now if I claim it as my residency I can eventually sell tax free.
So you could roll your profits into luxury condos via a 1031 exchange. Live in one a few years sell tax free; move to the next one then sell tax free ..... You get the idea.
--198.168.xx.xx |
1032 Exchanges (by Julie [OH]) Posted on: Apr 2, 2017 12:39 PM
Message:
That sounds good tryan! We don't have a house to go to...everything is wrapped up in this 12 unit apartment building! --74.141.xx.xx |
1032 Exchanges (by Ray-N-Pa [PA]) Posted on: Apr 2, 2017 4:20 PM
Message:
Like kind means shifting from a real estate asset to another real estate asset. So you take your 12 unit and buy a strip mall, a farm, a factory, an occupied out parcel, or even forest land. --24.239.xx.xxx |
1032 Exchanges (by Emily [TX]) Posted on: Apr 3, 2017 6:42 AM
Message:
If you buy a property via 1031 exchange and then convert into a residence, the taxes deferred at the time of exchange will have to be paid at the time of sale of the residence. Only the gain from the time it was made a residence until the date of sale will be deferred. Sorry folks, there is no free lunch. --155.201.xx.x |
1032 Exchanges (by Robin [WI]) Posted on: Apr 3, 2017 12:24 PM
Message:
Julie, where in Ohio are you located? We're looking at moving up into apartment buildings, and we're investing in Ohio right now. Or maybe we could help with the property management. --204.210.xxx.xxx |
1032 Exchanges (by Julie [OH]) Posted on: Apr 3, 2017 1:12 PM
Message:
Robin, we're in eastern Summit county. That's about 45 minutes south of Cleveland and 15 minutes east of Akron. --162.235.xx.xxx |
1032 Exchanges (by Emily [TX]) Posted on: Apr 4, 2017 6:28 AM
Message:
I meant to say, only the gain from the time it was made a residence until the date of sale will be *excluded*. Gains accrued during the time the property was a business up until the 1031 exchange, and deferred in the exchange, are not excluded upon transition of the property to residence and subsequent sale of the residence. --155.201.xx.x |
1032 Exchanges (by Robin [WI]) Posted on: Apr 4, 2017 6:49 PM
Message:
That's within striking distance of me. If you want to talk, I posted "12 unit apartment building" on the Akron/Canton craigslist. --204.210.xxx.xxx |
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