Monthly Archives: March 2018

How to Defer Capital Gain Taxes?

Capital gain taxes are levied whenever you sell a property. This can impact businessmen involved in property investment. That is why many realtors and business property investors look up to 1031 exchange.

The 1031 exchange allows realtors and business property investors to sell an old property and purchase a new property while deferring capital gain taxes. To do this, the owner of the property should purchase a property that is either equal or higher in the value of a selling property. The owner of the property must also hire a Qualified Intermediary (QI), who will purchase a new property for the owner as directed.

Fractional ownership of real estate can be described as a share in the ownership of a real property. It is usually seen when a property is too expensive, too big to be managed by an individual or any other legal reason. The property can be owned by 5 people, where each person shares the maintenance, taxes, and takes the turn to become the owner of the property.

Exchange fractionally owned real estate property is becoming a popular and effective business tool. But, it also comes with it is also extremely technical and maybe a task risk.

Investment in Real Estate Properties Got Easier with 1031 Exchange

Are you looking to sell your old property and invest in a new property? Are of concerned about paying capital gain taxes while selling your old property? The section 1031 is designed specifically for people like you. The 1031 exchange allows you to sell an old property and purchase a new one all while deferring capital gain taxes.

A 1031 tax-deferred exchange can only happen under appropriate conditions. You must make sure that the property you purchase is equal or higher in value than that of a property you sell. You will also need a Qualified Intermediary (QI), who will hold your funds and purchase a new property as directed by you. You will need to identify a new property within 45 days of the closing of your relinquished property (the property you sold). Finally, you will have to close in on one or more identified property within 180 days of closing of the relinquished property.

Your investment in real estate property got easier with 1031 exchange. If you are looking for investment in real estate property in Massachusetts, feel free to contact Fai exchange.