Home > Articles >

Choosing the right 1031 exchange QA

By JOY GEORGE, for 1031exchangerequirement.net 9/4/2007

Most previous studies of REIT-securitized real estate examine the performance of REITs versus only common stocks.To qualify for the full exclusion, either married spouse can meet the ownership requirement, but both must meet the use requirement. It is also not available for entities owning more than 1,000 barrels of oil (or 6,000,000 cubic feet of gas) average daily production.The taxpayer sends written identification of the address or legal description of the replacement property to the Qualified Intermediary, on or before Day 45 of the exchange.x If - in addition to the exchange proceeds - construction financing is required to complete the improvements, the EAT will become the borrower under a non-recourse note and deed of trust.

The importance of a good QA

The IDC's that you previously deducted must be recaptured to the extent that you do not acquire qualified natural resource property. US banks have begun to give home loans for properties in Mexico, but, so far, not for other Central American countries. But while the exchange may sound simple in premise, there are specific rules that must be followed to completely defer the capital gains tax.To qualify for the full exclusion, either married spouse can meet the ownership requirement, but both must meet the use requirement. As long as the property being sold is not a primary residence, and there is a tax liability to selling, an Exchange should be considered. A search of the literature for return evidence from this century suggests that there was only one other period of negative total returns for national real estate - the late 1920s and early 1930s.1031 Exchange provides detailed information on 1031 exchange, 1031 exchange companies, 1031 exchange experts, 1031 exchange forms and more.

Office, planes, land and oil

In other words, if you sell a working interest and buy an office building, you would have to "recapture" the Intangible Drilling Costs (IDC) costs you had deducted. Complete details of investment requirements, including risks and expenses, are disclosed in the individual property's Offering Memorandum. Buying value is the secret to success in this business, and builds instant equity. This is problematic for a number of reasons.TIC investments can generally be conveyed at any time, to any qualified buyer, based on lender requirements and in accordance with the TIC agreement. Learn more about 1031 exchange fees, costs and charges. Historically, countless fortunes have been made in the purchasing of undeveloped land by individuals who understood the concept of buying and holding land in the path of growth.



Access to TIC properties Nationwide!
FREE!


Name
(First Last)*
Email *
Phone *
My role*
Status*
Equity*
Tell us about your situation
  
* Indicates that these fields are required and must be filled in.
your privacy assured