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Question: Real estate 1031 tax deferred exchange help needed. UT property to VA/MD to DC?
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Answer #1:
1031 exchanges do not have to be in the same geographical area. You did not give a reason for the two exchanges. If you are using the UT and future VA or MD properties for personal use, they will not qualify for 1031 exchange.There are specialty brokers who deal with 1031 exchanges, and serve as an intermediary in exchanges. 1031 exchanges do not have to be two-party exchanges. Find a broker who has a national market in order to do the trades you seek. The broker is aware of the time constraints involved in executing qualifying trades.
Answer #2:
It's common for people who don't know what they're doing to muff 1031 exchanges. Can you say "tax nightmare?"The IRS looks closely at these exchanges, and if you don't dot all the i's and cross all the t's, poof.
Don't be foolish and think you can do this yourself with the help of anonymous people on an Internet message board.
I could go online and get advice on how to fix my brakes even though I don't know what I'm doing. I could certainly take them apart, and probably get them back together again without too many nuts, bolts, and springs left lying around when I'm done. But I'd be a fool to try it.
If you're unwilling or unable to secure professional advice about this possible transaction, don't do it.
Answer #3:
1031 has to be like kind property and residences are never includedthe family house in Utah is not commercial property therefor it is not exchangeable
you might put your offer in the hands of a negotiator and he might be able to find the exchanges that would qualify but on your own, you don't have much of a chance
Answer #4:
In a 1031 Exchange you can purchase any real estate, anywhere in the US, as long as the real estate is not property you already own nor one that you will immediately inhabit as your primary residence. In 1991, the IRS finally made it clear that you can exchange any real estate investment property for another real estate investment property. So, a single family house can be exchange for a commercial property, vacant land or another single family house. The crux is to be certain to purchase real property which will be used as investment property not a primary residence. The UT property, has it ever been your primary residence? If you lived in the UT property any 2 years of the last 5 years and have not sold another primary residence within the last 2 years you may be able to sell the property and use the primary residence exemption code IRC 121. This code allows you to keep the proceeds of your home sale and not pay tax as long as your gains do not exceed $250,000 for a single person or $500,000 for a married couple.If you decide that the 1031 Exchange is the way you would like to proceed, please call me and we can talk about your specific transaction and needs. I specialize in 1031 Tax Deferred Exchanges and provide sellers/taxpayers with the Intermediary services they need to complete a 1031 Tax Deferred Exchange. I would be happy to discuss your situation with you at no cost to you for my consultation. You can reach me at 866-988-1031. Take care, Brigitte
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