The Power Of Real Estate Exchange
The Section 1031 Exchange of Internal Revenue Service (IRS), also known as Starker Exchange or Tax-Deferred Exchange, clearly states that there are no gains and losses incur on exchange of like-kind property. Without gains or losses, the exchange of property defers the tax. Like-kind property means same nature or character. And, the property for exchange must be used for business or investment purpose in order to qualify.

The qualified property includes apartments, rental houses, retail properties, commercial, raw land, office buildings, industrial, and ranches. The non-qualified property includes personal residences, dealer properties, partnerships interests, inventory, stocks, bonds, notes, securities, indebtedness, and other properties.

IRS also permits to mix and match the nature or character property. For example, you can trade an apartment for rental house. And, IRS gives the owner of the property forty days to produce a list of possible trades, and one hundred eighty days to complete the exchange of property.

The owner can also exchange two, three, or more property for one property. The general rule is the replacement property exceeds or matches the value and debt of the property being exchanged. For example, a raw land which is worth $600,000 can be exchange for $300,000 rental houses, and $300,000 retail properties.

There are a number of reasons to exchange a property. The common reasons for exchange are rebuilding equity, moving investment location, upgrading size, reducing maintenance expenses, and maximizing the appreciation.

First, the owner proceeds with the regular sale of property. After the completion of purchase and sale agreement, the owner takes the agreement and notifies of 1031 exchange to closing agent. Then, the Qualified Intermediary (QI) who handles the exchange gets the information to closing agent, and sets up the proper papers for exchange. Within forty days, the owner writes and gives a list of replacement property to the QI. In one hundred eighty days, the owner signs the completion of purchase and sale agreement with 1031 Exchange Clause of the replacement property. Finally, the QI contacts the closing agent on replacement property to complete the 1031 Exchange.

The Real Estate Exchange effectively and efficiently reduces the tax. Failing to meet the requirement, the owner pays a hefty tax on capital gains. The QI makes sure that the owner qualifies for the exchange. Most QI composes a team of CPA and Attorney.

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Tax Info When Selling A Property
Q DEAR BOB: If I sell an investment property I have owned for less than a year, can I take advantage of tax rule 1031 and trade up to another higher value property without paying capital gains tax on my profit?
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Mix of ideas is proposed for west side
Developers submit plans to city for 5 mostly empty properties

Developers are proposing projects ranging from a mix of condominiums, shops and restaurants to a biomedical research facility to a Red Roof Inn for five mostly vacant properties scattered across downtown Baltimore's west side.

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The No-Tax House Sale
If you once owned a home that at one point was your principal residence, but was later rented out, the IRS may just have given you some good news. Depending on the facts of your situation -- and the timing -- you may be able to combine the principal-residence capital gains tax exclusion of up to $500,000 with a tax-deferred exchange, and pay no federal tax at all when you sell your house.
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Pros and Cons to Calculating Your Home's Value Online
More homeowners are turning to free or nominally priced online tools to follow the possible changes in the value of their properties. We put four Web sites to the test.
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Is the UK Running Out of Homes?
The simple answer could be "yes, unless more properties are built". However looking at research on the historical growth and future projections, there are some very interesting facts to consider. (PRWEB Jul 16, 2006)
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Haute Portfolio: The Future Source For Buyers And Sellers
Haute Living, the standard for luxury real estate and design has introduced its premier search engine, Haute Portfolio. A comprehensive search engine, Haute Portfolio.com provides up to-date information on agents, brokers and luxury properties throughout the country. (PRWEB Jul 17, 2006)
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