exchange1031 help

                                                                                          Prove your intent The first thing the IRS examines in a 1031 exchange is your intent. The intent with which you purchase a property and use it plays a significant role in determining whether or not you will qualify for a 1031 exchange. Properties utilized for personal use don't qualify for a 1031 exchange. Only those properties that are held for use in trade, business, or investment purposes are eligible for a 1031 exchange. What does the 'Safe Harbor Rule' say? In 2008, the IRS included the safe harbor rule to the initial tax code. The rule states that so long as the investor adheres to 1031 exchange guidelines, the IRS will not question whether a dwelling unit ...

Jeffrey is planning to sell an investment property and wants to purchase a new investment property. He would like to defer the capital gain through a 1031 exchange, but he also needs to keep some of the cash from the sale with himself. He wishes that he could do both. So we can help him out in getting out of this situation. There is a misconception in the mind of the investor that he cannot keep any proceeds from the sale of the relinquished property if he wants to complete the 1031 exchange. This is right if he is going to defer 100% taxes owed after the sale, but, if he is going to keep some portion with him, then he can pay for the preserved part. An investor who needs the cash now, to pay the medical bills, or might be for a vacation that is long past due. Whatever the case, rather than refinancing, taking out a new loan or withdraw the cash from a 410K or find the money from anywhere else, the investor finds it more profitable to sell the property to obtain the needed f...