reverse 1031 (by Ed [CA]) Aug 10, 2017 5:23 AM|
reverse 1031 (by Emily [TX]) Aug 10, 2017 7:03 AM
reverse 1031 (by KF [TX]) Aug 10, 2017 1:53 PM
reverse 1031 (by KF [TX]) Aug 10, 2017 1:58 PM
reverse 1031 (by Ed [CA]) Posted on: Aug 10, 2017 5:23 AM
Do any of you have any experience with a reverse 1031 exchange? Using the process you can buy your replacement property first (get the property you want, when you want), title is held in the name of the 1031 exchangor, then sell your property (i believe within 180 days) and transfer the new property from the exchangor to you.
I'm curious what your costs were, and what the pro's and con's of the process were.
Thanks in advance!
reverse 1031 (by Emily [TX]) Posted on: Aug 10, 2017 7:03 AM
From a tax perspective there is really no difference. The main con is obviously if you don't have the capital to buy the replacement before you sell the relinquished property.
reverse 1031 (by KF [TX]) Posted on: Aug 10, 2017 1:53 PM
The exchange company we used told us that the reverse exchange was thousands of dollars more than a standard 1031. I would imagine that the administrative costs would be higher, but other than that, I'm not sure why. --23.30.xx.xxx
reverse 1031 (by KF [TX]) Posted on: Aug 10, 2017 1:58 PM
One of the big advantages to a reverse exchange is that you can do repairs and/or improvements to the property before you "own" it. So, the money you spend on that is counted toward the cost of the property to offset your capital gains. --23.30.xx.xxx