1 of 7 photos San DiegoCA For Sale $449,0004 Beds / 2 Baths
REE 24 HOUR RECORDED INFO AT 1-800-433-0203 EXT 101.
This updated 4 Bedroom 2 Bath home is in a prime location on a corner lot in a quiet, friendly neighborhood of Clairemont...
1 of 2 photos EncinitasCA For Sale $549,9003 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 7 photos San DiegoCA For Sale $449,0004 Beds / 2 Baths
REE 24 HOUR RECORDED INFO AT 1-800-433-0203 EXT 101.
This updated 4 Bedroom 2 Bath home is in a prime location on a corner lot in a quiet, friendly neighborhood of Clairemont...
1 of 11 photos EncinitasCA For Sale $420,0004 Beds / 1 Baths
Charming home faces west to enjoy the gorgeous sunset views. Perched high on the hill for lovely ocean breezes. The kitchen is light and bright with white cabinets, center island and tile flooring...
1 of 1 photos JamulCA For Sale $399,0005 Beds / 5 Baths
5 BR and 5 BA, Custom Built Home on OVER 2 ACRES of usable land!
Put your own finishing touches on the interior and landscaping to complete this home and make it amazing!..
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 7 photos SanteeCA For Sale $369,9003 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 1 photos San Diego For Sale $324,9004 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 3 photos San DiegoCA For Sale 2 Beds / 2 Baths
This townhome features 2 bedrooms and a loft. Once you are inside it feels spacious with high ceilings and many windows. Use the loft for an office or extra bedroom...
1 of 2 photos San DiegoCA For Sale 4 Beds / 2.5 Baths
This 4 bedroom home is spacious and on a large lot. Cosmetic fixer with tons of potential. The property has a view of the hills. Close to freeway - near parks and schools...
1 of 12 photos San DiegoCA For Sale $369,9003 Beds / 2 Baths
A desirable area with a Charming 3 bedroom home! Updated and well kept home has recently painted inside and out with newer glazed windows and front security gate...
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.
