1 of 14 photos Pacific BeachCA For Sale $249,9001 Beds / 1 Baths
Unbelievable location only 3 blocks to the beach! This condo has everything you need with granite counter tops, travertine in the bathroom, maple flooring, and cherry cabinets...
1 of 1 photos San Diego For Sale $279,0004 Beds / 2 Baths
4BR/2.5BA
From the front porch you can see the OCEAN! Handyman special - bring your tool belt and fix this home up! Large back yard - for you to create your own private haven...
1 of 14 photos San DiegoCA For Sale $299,9993 Beds / 1 Baths
FREE 24 HOUR RECORDED INFO AT 1-800-433-0203 EXT. 7773
This 3 bedroom, 1 bath home is a beautiful blend of classic 1940''s charm and modern upgrades...
1 of 9 photos EscondidoCA For Sale $325,0004 Beds / 2 Baths
Great opportunity to customize to your taste and style. Home is ready for your TLC to make this YOUR DREAM HOME! You can easily add another bedroom and bath above the garage making it a 5 bed/3 bath...
1 of 7 photos SanteeCA For Sale $389,0003 Beds / 4 Baths
Must see the breath taking views in Northstar at Sky Ranch this complex is nestle in the hills of Santee. You will feel at home in this upgraded townhome...
1 of 9 photos San DiegoCA For Sale $399,0002 Beds / 3 Baths
REDUCED! This townhome is located in a quiet complex Chateau Village. This complex features pool, spa and tennis courts. You will feel the openness with the vaulted ceiling...
1 of 2 photos EncinitasCA For Sale $429,0003 Beds / 2 Baths
This single story home is located in Village Park. This is a great neighborhood with parks and walking trails. The home has a fireplace in the living room to cozy up to with your friends and family...
1 of 25 photos EscondidoCA For Sale $1,150,0004 Beds / 6 Baths
Luxury Defined-elevated and Private Architectural Gem with dark bottom pool with waterfall, swim ledges and separate spa with waterfall and views to Catalina Island, when clear...
1 of 22 photos CarlsbadCA For Sale $1,950,0004 Beds / 4 Baths
Sensational views and a sense of privacy elevated from street with entry garden and mature palms. Side lot is mostly vacant with perimeter landscape plus multiple fruit trees, olives and palms...
1 of 15 photos San DiegoCA For Sale $2,075,0003 Beds / 3 Baths
Designer''s own home with many customized features showcasing indoor\/outdoor living with San Diego''s climate and views taking full advantage of this elevated, private lot walking distance to Old ..
1031 Exchange Tax Information
How to avoid paying taxes using section 1031 and 121 What is a 1031?
When you sell property, you pay tax. However
Section 1031 of the
Internal Revenue Code (IRC) lets you defer the tax. A 1031 Exchange (aka:
Starker exchange, tax-free exchange, like kind exchange, delayed exchange,
etc.) is a specific transaction that joins the sale of an Old Property and
the purchase of a New Property for the purpose of deferring taxes. 1031 is
an actual IRS code, NOT a 'loop-hole.' Where loopholes are technicalities
around the law, 1031 IS THE LAW, and makes it safe and legitimate for anyone
who meets the requirements.
Properties that qualified can be bare land, rentals, commercial buildings,
and homes other than your primary residence. You can also use the 1031 to
buy and sell oil and gas interests, mineral rights, and working or royalty
interests. The 1031 is a great tool when used for property that has
increased in value or been depreciated for tax purposes. It increases your
leverage, flexibility and buying power. The 1031 also lets you
change, diversify, or consolidate your investments.
How to avoid paying taxes
If you would like to avoid paying taxes, you
can. Real estate owners can use two different IRS
code sections to avoid all, or almost all, of the tax on the sale of their
real estate. The Section 121 Code applies to your personal residence. It
provides for an exemption of $500,000 of gain for a married taxpayer on the
sale of a primary residence (or $250,000 of gain for a single person). In
order to
qualify for Section 121, the taxpayer (s) needs to both use and own the
property as a primary residence for at least 2 of the last 5 years.
Code Section 1031 applies to any real estate held for investment
purposes, like rental houses, commercial property, or bare land. This allows
the taxpayer to defer, or postpone, the payment of the capital gains tax by
rolling the gain from the sale of an old investment property forward into
the purchase of a new investment property. You can also use 1031 in
selling and buying second homes or vacation homes! Used together, these two
code sections are very powerful in helping avoiding taxes. Be sure to
consult a 1031 Expert if you are considering a tax-deferred exchange
transaction.
6 Things to Know About Using the 1031:
If both your old and new properties qualify as investment or business use,
you can exchange nearly any type of real estate.
You have 45 days from the closing of
your sale to list the properties you may want to buy. There are no
exceptions to the deadline.
From the sale closing date, you have 180 days to close on the purchase.
There are no exceptions.
The
IRS says you must use a Qualified Intermediary. The QI cannot be your
friend, employee, broker, accountant or attorney.
You must purchase and take title to
your new property exactly as you held title to your old property.
You must buy a property equal or
higher in value than the one you sold, and reinvest all of the cash proceeds
from your sale.
