The Many Non-Financial Benefits of HomeownershipBuying and owning your own home can have a big impact on your life. While there are financial reasons to become a homeowner, it's essential
1031 Exchange Facts
Dated: September 13 2022
Views: 112
What is a 1031 Exchange?
Real estate investors have used 1031 Exchanges as part of their investment strategy for decades. A 1031 exchange is a swap of one real estate investment property for another that allows capital gains taxes to be deferred. Investors use 1031's to defer capital gains and build wealth.
To break it down simply a 1031 exchange (derived from Section 1031 of the Internal Revenue Code) is a real estate investing tool that allows investors to defer capital gains tax, which is generally required upon the sale of a business or investment property, by placing the proceeds from that sale into a replacement property. The transaction must be a like-kind exchange meaning the property sold and the replacement property have to be similiar in nature and character, but not necessarily the same quality or grade. For example, an improved single-family property held for investment could be exchanged for an unimproved single-family property held for investment. Likewise, a ranch or farmland held for investment can be exchanged for single-family rentals used for business or investment purposes. Properties that are used primarily for personal use, such as a primary residence, a second home or vacation property, do not qualify as a like-kind exchange.
Latest Blog Posts
Expert Home Price Forecasts Revised Up for 2023Toward the end of last year, there were a number of headlines saying home prices were going to fall substantially in 2023. That led to a lot
Mortgage Rates: Past, Present, and Possible FutureIf you’re hoping to buy a home this year, you’re probably paying close attention to mortgage rates. Since mortgage rates
Why It’s Still a Seller’s Market TodayEven though activity in the housing market has slowed from the frenzy that was the ‘unicorn’ years, it’s still a seller&rsquo
Copyright © MFRMLS.com All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information on this site was last updated Last updated on April 25, 2024 6:00 AM UTC The listing information on this page last changed on Last updated on April 25, 2024 6:00 AM UTCd. The data relating to real estate for sale on this website comes in part from the Internet Data Exchange program of MFR MLS.
All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.
Updated on April 25, 2024 6:00 AM UTC
