1031 Exchange of Real Property Should be Done Carefully According to IRS Rules

A 1031 Exchange of Real Property should be done carefully to follow the Internal Revenue Code and rules of the IRS. 

 

You should use the services of a certified public accountant, or licensed income tax professional or lawyer qualified in real estate taxation.

 

Important issues to consider for any such exchange will be possible deferring of capital-gains taxes, what Section 1031 of the Internal Revenue Code says, swap of investment properties, defer income tax on capital gains, what is the Starker exchange, relinquished property, replacement property, what property qualifies, use of "boot", fair-market rent, and whether both properties are "investment" in character.

 

Check with the IRS.gov web site for answers to your questions about 1031 exchanges - http://www.irs.gov/businesses/small/industries/article/0,,id=98491,00.html.

 

see Washington Post column article - The Right Way to Trade Property with a Starker Exchange - click here.

 

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Harrison K. Long, Realtor & broker, Explore Group, Coldwell Banker Previews, Irvine, CA.  CA DRE #01410855.  ExploreProperties@gmail.com.  Lawyer member of the California State Bar Association - State Bar number 69137.  Helping People with their Best Decisions About Real Estate at Orange County, California.

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