1031 Property Exchange – Investment Properties: 1031 Exchanges
If you are selling an investment property and planning on re-investing then the 1031 exchange is right up your alley. A 1031 exchange is basically a tax shelter allowed by the IRS where you sell an investment property and then re-invest the profit from that sale into another property. Now, keep in mind that you [...]

Introduction to Reverse 1031 Exchanges Pursuant to IRS Revneue Procedure 2000-37
Investors can acquire a like-kind replacement property before disposing of the current relinquished property by structuring a reverse 1031 exchange transaction pursuant to Revenue Procedure 2000-37. Investors may be concerned about the possibility of not being able to locate, identify and acquire suitable like-kind replacement properties within the required deadlines …

Starker Exchanges Can Be Tricky
Q I have owned and rented a house down south since 1989 and plan to sell it as part of a section 1031 Starker exchange. I am seriously considering buying a beach house in Virginia, which I intend to rent during the summer months, as well as using it for 14 days or fewer during the year.

1031 Exchange Boot
Although it is not used in the Internal Revenue Code, the term ?Boot? is commonly used in discussing the tax implications of a 1031 Exchange. Boot is an old English term meaning ?Something given in addition to.? ?Boot received? is the money or fair market value of ?Other Property? received by the taxpayer in an exchange. Money includes all cash equivalents, debts, liabilities or mortgages of the taxpayer assumed by the other party, or liabilities to which the property exchanged by the taxpayer is subject. ?Other Property? is property that is non-like-kind, such as personal property, a promissory note from the buyer, a promise to perform work on the property, a business, etc.

There are many ways for a taxpayer to receive ?Boot?, even inadvertently. It is important for a taxpayer to understand what can result in boot if taxable income is to be avoided.
The most common sources of boot include the following:

Cash boot taken from the exchange. This will usually be in the form of "Net cash received", or the difference between cash received from the sale of the relinquished property and cash paid to acquire the replacement property(ies). Net cash received can result when a taxpayer is "Trading down" in the exchange (i.e. the sale price of replacement property(ies) is less than that of the relinquished.) Debt reduction boot which occurs when a taxpayer?s debt on replacement property is less than the debt which was on the exchange property. As is the case with cash boot, debt reduction boot can occur when a taxpayer is "Trading down" in the exchange.

Sale proceeds being used to pay non-qualified expenses. For example, service costs at closing which are not closing expenses. If proceeds from the sale are used to service non-transaction costs at closing, the result is the same as if the taxpayer had received cash from the exchange, and then used the cash to pay these costs. Taxpayers are encouraged to bring cash to the closing of the sale of their property to pay for the following: Non-transaction costs: i.e. Rent perorations, Utility escrow charges, Tenant damage deposits transferred to the buyer, and any other charges unrelated to the closing.

Excess borrowing to acquire replacement property. Borrowing more money than is necessary to close on replacement property will not result in the taxpayer receiving tax-free money from the closing. The funds from the loan will be the first to be applied toward the purchase. If the addition of exchange funds creates a surplus at the closing, all unused exchange funds will be returned to the Qualified Intermediary, presumably to be used to acquire more replacement property. Loan acquisition costs (origination fees and other fees related to acquiring the loan) with respect to the replacement property should be brought to the closing from the taxpayer?s personal funds. Taxpayers usually take the position that loan acquisition costs are being paid out of the proceeds of the loan. However, the IRS may take the position that these costs are being paid with Exchange Funds. This position is usually the position of the financing institution also. Unfortunately, at the present time there is no guidance from the IRS on this issue which is helpful.

Non-like-kind property which is received from the exchange, in addition to like-kind property (real estate).

Boot limitationsExchangers are advised to follow the following guidelines:

Read more on 1031 Property Exchange – Investment Properties: 1031 Exchanges…

Listen Here or Post a Comment »

Stuart Florida Real Estate
Stuart, Florida is located in Martin County north of West Palm Beach between Port St Lucie and Hobe Sound along Highway 1 near the St Lucie Inlet and the Atlantic seacoast, 100 miles north of Miami, 115 miles southeast of Orlando and 250 miles southeast of Jacksonville and known as the ?Sailfish? capitol of the world. Stuart and St. Lucie (St Lucie and Martin counties) are commonly called, ?The Treasure Coast? after the Spanish treasure galleons sunk offshore hundreds of years ago, whose coins still wash up occasionally on the beaches. Here, the diversity and quality of life is what it?s all about.

The population was 14,633 at the 2000 census with 7,220 households, and 3,422 families residing in the city. As of 2004, the population recorded by the U.S Census Bureau is 15,728. In the city the population was spread out with 14.5% under the age of 18, 6.9% from 18 to 24, 24.5% from 25 to 44, 21.2% from 45 to 64, and 32.9% who were 65 years of age or older. The median age was 48 years. For every 100 females there were 87.8 males. For every 100 females age 18 and over, there were 84.4 males. The median income for a household in the city was $30,574, and the median income for a family was $40,701. Males had a median income of $29,151 versus $23,125 for females. The per capita income for the city was $21,139. About 7.8% of families and 11.2% of the population were below the poverty line including 17.5% of those under age 18 and 9.1% of those ages 65 or over.

Stuart, Florida's prospering arts community and revitalized downtown area is also the site for several festivals each year. It offers a wide variety of museums, theatres, restaurants and getaways of its own. It is also conveniently located for enjoying the best that Florida has to offer. The historic district is filled with unique shops, and great restaurants. There is also a vibrant night life scene going on here. Jensen beach, St Lucie and Fort Pierce just to the north all have its own ambience. Ft. Pierce is where the African-American landscape painters known as ?The Highwaymen? got their start in the 1950?s.

As to real estate, a diverse collection of lifestyles makes this place very special. You can go from golf course town-homes and condos to living near the downtown or the beach. The waterfront estates are very plentiful (condominiums on the ocean, St. Lucie River, and deep water canals). Innumerous of single family home communities, some with maintenance free living and others with good sized home sites.

Stuart, Florida has a good quality of life, a strong and rapidly growing economy, good schools, nearby colleges, safe neighborhoods and a vast range of protected natural environments. It is the perfect location to see it all and still make it back home each night!
-

Free Special Report on Cutting Capital Gains Taxes
Free Special Report on Cutting Capital Gains Taxes for Home … – PR.com (press release)Free Special Report on Cutting Capital Gains Taxes for Home …PR.com (press release), NY – May 31, 2007"When they decide to sell their property, they could take advantage of the 1031 exchange and 1031 exchange investment save thousands in taxes." The number 1031 refers to the …Zimbabwe: Harare Ranked Last Out of 12 African Cities AllAfrica.comall 2 news articlesSource: news.google.comNo cure for rogues – Rocky Mountain NewsNo cure for roguesRocky Mountain News, CO – May 30, 2007Daniel reportedly had parked hundreds of thousands of dollars in various accounts by exploiting Section 1031 of the Internal Revenue Code, …Source: news.google.com

1031 Property Exchange – Investment Properties: 1031 Exchanges
If you are selling an investment property and planning on re-investing then the 1031 exchange is right up your alley. A 1031 exchange is basically a tax shelter allowed by the IRS where you sell an investment property and then re-invest the profit from that sale into another property. Now, keep in mind that you [...]

American Stock Exchange to Trade Options on Interactive
American Stock Exchange to Trade Options on Interactive Brokers Group Forbes – Interactive Brokers Group, Inc. options will open with position limits of 5,000,000 shares. The options will trade on the March expiration cycle. The specialist will be Susquehanna Investment Group. Interactive Broker Group, Inc. is an automated Source: www.forbes.comChina's Premier to Tackle Trade SurplusForbes – Premier Wen Jiabao pledged that China would further reform its currency controls and 1031 exchange san diego take steps to resolve problems ranging from the nation's growing trade surplus to its soaring foreign exchange reserves. China's overall economic outlook was Source: www.forbes.comDubai Mercantile Exchange receives additional regulatory approvals AME Info – The Securities and 1031 exchange san diego Commodities Authority of the United Arab Emirates (UAE), The Rahoitustarkastus Finansinpektionen of Finland (in charge of Financial Supervision), The China Securities Regulatory Commission and 1031 exchange san diego the Central Bank of Lebanon have Source: www.ameinfo.com

What are 1031 exchange services?
What are 1031 exchange Services?

Under section 1031 of the Internal Revenue Code, a real property owner can sell his property and then reinvest the proceeds in ownership of like-kind property and defer the capital gains taxes. To qualify as a 1031 like-kind exchange, property exchanges must be done in accordance with the rules set forth in the tax code and in the treasury regulations. 1031 exchange services can offer significant tax advantages to real estate buyers. Often overlooked, a 1031 like-kind exchange is considered one of the best-kept secrets in the Internal Revenue Code.

For more information here are 2 good links:
http://www.1031-nnn-properties.com/1031-exchange.htm & http://www.1031-nnn-properties.com/1031.htm

1031 Reverse Exchange
A 1031 Reverse Exchange occurs when the taxpayer intends to make a like-kind exchange but it requires the replacement property before selling the relinquished property. The taxpayer may fear that replacement property is vital to his or her business and may be sold to another party.

You would consider a 1031 reverse exchange when you find a property you would like to acquire before you sell your current property, a Reverse 1031 exchange can save you thousands of dollars in capitals gain tax.

The IRS issued Revenue Procedure 2000-37 (Rev Proc) in September 2000 that gives taxpayers guidance on Reverse 1031 Exchanges. A ?Safe Harbor? Reverse introduces a new entity into the reverse process-an Exchange Accommodation Titleholder (EAT). An EAT is a single member limited liability company (LLC) established by a Qualified Intermediary (QI) for use specifically in a reverse exchange. It takes title to or a property for the tax payer and holds it until the taxpayer is able to sell the old property. A Revenue Procedure places a time restraint on the tax payer and the EAT must pass on the title on or before 180 days from the date of the EAT?s purchase. When the EAT parks the new property, a Revenue Procedure requires the taxpayer to identify their old property on or before 45 days from the EAT?s purchase.

The Revenue Procedure also refers to the fact that some reverse exchanges will fall outside of the ?Safe Harbor.? A ?Non Safe Harbor? Reverse will follow the guidelines outlined in Revenue Procedure and the exception of the 180 days requirement.

There are three types of 1031 Reverse Exchange namely the "Reverse regs." Exchange, "Biggs"(9) reverse exchange, and lastly the "Simple" reverse exchange. The first two types rely on an accommodator or intermediary who is hired to complete the exchange. The first transaction under these two approaches is the same. It is the separation in time between the first and second transaction that creates the deferred exchange. In a "simple" reverse exchange, the buyer serves a dual role, facilitating the transactions for the taxpayer and purchasing the relinquished property. Among the three types of 1031 Reverse Exchange, the "simple" reverse is the rarest of them all and it will most likely be the result of a simultaneous exchange caused to become undone.

-

Calculate Your Profit from a 1031 Exchange
The formula showing the calculation of the profit from a 1031 exchange:

Sale Price ? Debt ? Cost of Sale = Exchange Proceeds

Debt ? new debt = boot

Exchange proceeds ? down payment = boot

Boot + boot = total boot

If exchange proceeds are equal to or less than the down payment on the replacement property, boot is zero. If the debt on the replacement property is greater than or equal to the debt on the replacement property, boot is zero. But if the down payment and/ or debt on the replacement property are lower, the differences that appear to be in your favor are taxable boot.

Mortgage on relinquished property ? Mortgage on replacement property ? Additional cash paid by you towards the new property (not including money invested from the sale of your old property) = Net boot received (Not less than zero)

Net boot received +
any cash received by you in the exchange = Boot received

Terminologies:

Boot - it refers to any non-like-kind property that is exchanged.

Sale Price – it is the sale price or consideration in the deed, the fair market value on the affidavit in the deed or the projected consideration.

Debt - is that which is owed; usually referencing assets owed, but the term can cover other obligations. In the case of assets, debt is a means of using future purchasing power in the present before a summation has been earned.

Cost of Sale – the total spent for a sale.
-

Read more on Stuart Florida Real Estate…

Listen Here or Post a Comment »

Calculate Your Profit from a 1031 Exchange
The formula showing the calculation of the profit from a 1031 exchange:

Sale Price ? Debt ? Cost of Sale = Exchange Proceeds

Debt ? new debt = boot

Exchange proceeds ? down payment = boot

Boot + boot = total boot

If exchange proceeds are equal to or less than the down payment on the replacement property, boot is zero. If the debt on the replacement property is greater than or equal to the debt on the replacement property, boot is zero. But if the down payment and/ or debt on the replacement property are lower, the differences that appear to be in your favor are taxable boot.

Mortgage on relinquished property ? Mortgage on replacement property ? Additional cash paid by you towards the new property (not including money invested from the sale of your old property) = Net boot received (Not less than zero)

Net boot received +
any cash received by you in the exchange = Boot received

Terminologies:

Boot - it refers to any non-like-kind property that is exchanged.

Sale Price – it is the sale price or consideration in the deed, the fair market value on the affidavit in the deed or the projected consideration.

Debt - is that which is owed; usually referencing assets owed, but the term can cover other obligations. In the case of assets, debt is a means of using future purchasing power in the present before a summation has been earned.

Cost of Sale – the total spent for a sale.
-

1031 Delayed Exchange
Delayed Exchange is an exchange of property to put off capital gain taxes, in which the funds are placed in a binding trust for up to 180 days while the seller acquires an "exchanged" property, pursuant to IRS Code sec. 1031. It is sometimes called a "Starker" after the man who first used this method and survived an IRS lawsuit.

It represents a simple, strategic method for selling one qualified property and the subsequent acquisition of another property within a specific time frame for the deferral of capital gain taxes. Indeed, any property owner should consider a Delayed Exchange for the sale of their existing property. To do otherwise would necessitate the payment of capital gain taxes in amounts that can exceed 20% to 30%, depending on the appropriate combined federal and state tax rates.

It also provides exchangers with more flexibility and options in acquiring the replacement property than the simultaneous exchange. The delayed exchange begins when the exchanger's first relinquished property is sold and is completed when the last replacement property is acquired within the prescribed exchange period. There are two basic aspects to a Delayed Exchange. First, the purchase price of the Replacement Property must be equal to or greater than the sales price of the Relinquished Property. Secondly, all equity received from the sale of the Relinquished Property must be used to acquire the Replacement Property.

Several Steps in a 1031 Delayed Exchange

STEP 1
List your exchange property for sale with a licensed real estate broker.

STEP 2
Begin your search for replacement property.

STEP 3
Open escrow on the exchange property being sold and complete the exchanged information sheet which was given to you.

STEP 4
Provide written notification of the properties you wish to identify, not later than 45 days following close of escrow on the first property sold.

STEP 5
Notify immediately as soon as you open escrow on your replacement property.
-

Tax Savvy Investing
A 1031 Exchange allows us to sell a piece of investment, trade or business property, buy a new property, and defer the gain or profit from the sale (not owe taxes on the sale immediately). If you eventually sell the new piece of property, you would owe taxes at that time. Generally, all gains and losses on sales of real estate are taxable, but an exception lies within a 1031 exchange where the property sold is traded or "exchanged" for the same or link kind property. The new property is seen as a continuation of the original investment, so taxes are not due at the time of the sale.

Many people believe that tax deferred exchanges are only for professional investors and huge corporations but thi s is simply not true. For me, everyone should take advantage of these whether they are a professional investors or not. The main strategy is to purchase a rental home below market value, rent it for a year, sell it, and buy two rental properties for your own good. If you do this for several times, there is a tendency that the IRS may take view that you are not a long term investor and disallow such exchanges. When you are ready to do a tax-deferred exchange, you will need a qualified intermediary, a CPA, or an attorney and you should always get professionals advice.

It is also very important to identify property in a written document signed by you, and delivered to the party assisting you with the exchange on or before 45 days from the date you sold the original rental property.

Important note: You can identify more than one property as the replacement property. The maximum number of replacement properties that you may identify without regard to fair market value is three. You may identify any number of properties provided that the total value of these properties is not more than 200% of the value of the original property you are selling. You don?t necessarily have to close all the properties you identify but you can name several if you?re not sure what will close and to observe the rules in technical note in terms of the value of properties you identify.

The 1031 Tax-deferred exchange is a great way to maximize your wealth. By keeping your investments growing without immediately paying taxes, you can do wonders for your net-worth. Remember, if you are planning to do a tax deferred exchange, you really need to ask for advice from a professional that handles these transactions on a regular basis. Try visiting www.1031exchangemadesimple.com for more information.

1031 Exchange – Investment Properties: 1031 Exchanges
If you are selling an investment property and planning on re-investing then the 1031 exchange is right up your alley. A 1031 exchange is basically a tax shelter allowed by the IRS where you sell an investment property and then re-invest the profit from that sale into another property. Now, keep in mind that you [...]

What are 1031 exchange services?
What are 1031 exchange Services?

Under section 1031 of the Internal Revenue Code, a real property owner can sell his property and then reinvest the proceeds in ownership of like-kind property and defer the capital gains taxes. To qualify as a 1031 like-kind exchange, property exchanges must be done in accordance with the rules set forth in the tax code and in the treasury regulations. 1031 exchange services can offer significant tax advantages to real estate buyers. Often overlooked, a 1031 like-kind exchange is considered one of the best-kept secrets in the Internal Revenue Code.

For more information here are 2 good links:
http://www.1031-nnn-properties.com/1031-exchange.htm & http://www.1031-nnn-properties.com/1031.htm

Misunderstanding Can Thwart Intent of Owners Employing a 'Starker Exchange'
Q I have rented out a house in Texas for more than 10 years and would like to sell it as part of a 1031 Starker tax-free exchange. I plan to sell the Texas house and buy a rental unit near Virginia Beach. I have never occupied or used the Texas property and have exclusively rented it to tenants over the years. I intend to rent the replacement property beach house during the summer months and also use it for 14 days or less during the rest of the year.

Read more on Calculate Your Profit from a 1031 Exchange…

Listen Here or Post a Comment »

Introduction to Reverse 1031 Exchanges Pursuant to IRS Revneue Procedure 2000-37
Investors can acquire a like-kind replacement property before disposing of the current relinquished property by structuring a reverse 1031 exchange transaction pursuant to Revenue Procedure 2000-37. Investors may be concerned about the possibility of not being able to locate, identify and acquire suitable like-kind replacement properties within the required deadlines …

Pros and Cons of 1031 Exchange
Pros of 1031 Exchange:
The taxpayer may dispose of property without bringing upon oneself any immediate tax liability. This allows the taxpayer to keep the earning power of the deferred tax dollars working for him in another investment. In effect, this money can be considered an interest-free loan from the IRS. There is no interest paid on the outstanding loan balance and there is no specific due date.

The loan will be abolishing upon the death of the taxpayer, which means that the taxpayer's estate never has to repay the loan. The taxpayer who is entitled by law gets a stepped-up basis on inherited property; that is, their basis is the fair market value of the inherited property at the time of the taxpayer's death. A subsequent sale by the heirs will be taxable only to the extent of the difference between the stepped up basis and the net sale price.

1031 exchange is highly advantageous to the taxpayer as it enables the taxpayers to sell income, investment or business property and replace with like kind replacement property without having to pay the capital gain taxes on the transaction. Section 1031 of IRS is the basis of tax-deferred exchanges. The ?safe-harbor? Regulations was issued by the IRS in 1991, which established approved procedures for 1031 exchanges. With the issue of this regulations tax deferred changes became easier, affordable and safer than before.

Cons of 1031 exchange:
The main disadvantage of 1031 exchange is that it offers a reduced basis for depreciation in the replacement property. The tax on the replacement property is calculated on the basis of the purchase price of the replacement property minus the gain, which was deferred on the sale of the relinquished property as a result of the exchange. Thus the taxpayer needs to pay tax also on the deferred gain if he cashes out of his investment.

The taxpayer may incur increased transactional costs for entering into and completing an Exchange. Typical costs include possible additional escrow fees, attorney's fees, accounting fees, and the Qualified Intermediary's fees.
-

1031 Exchange Rules and Requirements
A property transaction can qualify for a deferred exchange only if it follows the 1031 exchange rules laid down in the tax code and the treasury regulations. The foundation of 1031 exchange rules are that the properties involved in the transaction must both be held for productive purpose in trade, business and investment.

The 1031 exchange rule also lays down a guideline for the proceeds of a sale. The proceeds from the sale must go through the hands of a qualified intermediary and not by the hands of one of your agents or else all the proceeds will become taxable. The entire cash proceed from the original sale must be reinvested towards acquiring the new property. Any cash proceeds from the sale, if retained, are taxable.

The rule requires that the replacement property must be subject to an equal or greater level of debt than the property sold or the buyer will have to pay the tax on the amount of decrease or he will have to put in additional cash to offset the low debt amount on the newly acquired property.

There are two timelines that must be followed for a 1031 exchange to be successful.

Identification Period
This is the period during which the party selling the property must identify other replacement properties that he proposes to buy. It is scheduled as 45 days from the day of selling the relinquished property. The 45 days timeline has to be followed under any and every circumstances and is not extendable even if the 45th day falls on a Saturday, Sunday or any legal holiday.

Exchange Period
This is the period within which the person who has sold the relinquished property must receive the replacement property. It ends at 180 days after the date on which the person transfers the property relinquished or the due date for the person's tax return for the taxable year in which the transfer of the relinquished property occurred. According to 1031 exchange rule about timelines this 180 day timeline has to be adhered to under any circumstances and is not extendable even if the 180th day falls on a Saturday, Sunday or any legal holiday.
-

How do I perform a 1031 exchange?

Read more on Introduction to Reverse 1031 Exchanges Pursuant to IRS Revneue Procedure 2000-37…

Listen Here or Post a Comment »

1031 Exchange – Investment Properties: 1031 Exchanges
If you are selling an investment property and planning on re-investing then the 1031 exchange is right up your alley. A 1031 exchange is basically a tax shelter allowed by the IRS where you sell an investment property and then re-invest the profit from that sale into another property. Now, keep in mind that you [...]

Tenants in Common (TIC)
Tenants in common 1031 Exchange is a form of real estate asset ownership in which two or more persons have an undivided, fractional interest in the asset, where ownership shares are not required to be equal, and where ownership interests can be inherited. Each co-owner receives an individual deed at closing for his or her undivided percentage interest in the entire property. In brief, a TIC owner has the same rights and benefits as a single owner of property.

Although the TIC ownership form has been used for many years, its popularity has been increasing dramatically due to a recent IRS ruling. Exchangers often have difficulty in locating and closing suitable replacement property within the 45 day identification period and the 180 day closing period. 1031 TIC exchanges can significantly reduce these risks.

The Mechanics of a 1031 Tenants in Common Exchange

Investors have long used 1031 exchanges to defer taxes, while swapping old properties for newer properties. The reasons for swapping real estate vary greatly. In today's market, finding real estate values can be a challenge and individual investors have been somewhat limited to residential properties and small commercial structures.

An IRS ruling in 2002 greatly expanded the pool of available properties, particularly for individual investors. The ruling pertains to joint tenant in common (TIC) legal structures or co-owned real estate (CORE), which allows individuals to own a fractional interest in a property, such as an office building, apartment complex or shopping center. While tenant in common investment ownership has been around for some time, the 2002 ruling allowed investors to feel confident that the IRS would allow the tenant in common structure for 1031 TIC exchanges, and this has ignited a cottage industry.

The ruling, coupled with an increased interest in 1031 TIC properties, has led to a rapid growth in tenants in common and CORE investments. A 1031 TIC structure will allow investors to pool their resources and purchase larger, higher valued and better positioned properties than they might otherwise have access. Typically these more prestigious properties can also open doors to high quality lessees, such as Fortune 500 companies and government entities, reducing owner tenant risk. Real estate firms (Sponsors) organize the properties with professional management, removing day-to-day owner concerns.

TIC 1031 tenant in common exchanges are typically handled through broker-dealers and are under the oversight of the Securities and Exchange Commission (SEC). While there are 1031 TIC sales occurring outside of the SEC supervision, currently there is some controversy over these properties, and there may be a movement by the SEC to pull these properties under their regulatory umbrella.

San Diego (1031 exchange san diego) adds $4M to budget – North
San Diego adds $4M to budget – North County TimesSan Diego Union TribuneSan Diego adds $4M to budgetNorth County Times, CA – 8 hours agoSAN DIEGO – Unanticipated revenues will add about $4 million to San Diego Mayor Jerry Sanders' proposed $1.1 billion general fund budget for the coming …Revamping of building regulations is pushed San Diego Union Tribune$4 million is found in budget revision San Diego Union TribuneMayor adds $4 million to budget San Diego Union TribuneSan Diego Union Tribuneall 7 news articlesSource: news.google.comGwynn Awed at Impending Enshrinement – The Casper Star TribuneUSA TodayGwynn Awed at Impending EnshrinementThe Casper Star Tribune, WY – 3 hours agoThe moment brought a rush of memories as Gwynn recalled a face-to-face meeting at the 1992 All-Star Game in San Diego with "The Splendid Splinter." …Gwynn sees future: It looks immortal Albany Times Unionall 90 news articlesSource: news.google.comDiego Corrales Final 10 Bells for a Warrior – Doghouse BoxingPhiladelphia Daily NewsDiego Corrales Final 10 Bells for a WarriorDoghouse Boxing, Canada – May 16, 2007Ever sense we received the news of the untimely and 1031 exchange san diego tragic death of Diego Chico Corrales, each time that I sat at my desk and 1031 exchange san diego attempted to type, …McCullough remembers Diego Irish BoxingDiego Corrales: A final goodbye to a warrior who died too young The Chronicle JournalColumn: a Final Goodbye to a Warrior The Casper Star TribuneEl Paso Times – Bradenton Heraldall 46 news articlesSource: news.google.comRhinos Arrive in San Diego Zoo from India – The Open Press (press release)Rhinos Arrive in San Diego Zoo from IndiaThe Open Press (press release) – 13 hours ago(OPENPRESS) May 17, 2007 — Two members of the San Diego Zoo's Wild Animal Park animal care staff arrived with three male Indian rhinoceros in tow over the …Source: news.google.comNavy secretary highlights Miramar's significance during San Diego … – San Diego Daily Transcript (subscription)Navy secretary highlights Miramar's significance during San Diego …San Diego Daily Transcript (subscription), CA – 15 hours agoYou are not currently logged in at San Diego Source. To view the complete article please enter your login information below. …Company purchases land, proposes plans for tallest project in … San Diego Daily Transcript (subscription)San Diego foreclosure activity high but in shadow of other … San Diego Daily Transcript (subscription)all 76 news articlesSource: news.google.comMLB: San Diego 3, Cincinnati 2 – Market-Day.netSan Diego Union TribuneMLB: San Diego 3, Cincinnati 2Market-Day.net, AZ – 1 hour agoKevin Kouzmanoff drew a bases-loaded walk off Bronson Arroyo with none out in the ninth inning Wednesday night to give San Diego a 3-2 win over Cincinnati. …MLB: San Diego 3, Cincinnati 2 United Press InternationalFinal Score: San Diego 3, Cincinnati 2 SLAM! SportsWalk away slowly State-Journal.comMiami Heraldall 137 news articlesSource: news.google.comSan Diego FYI – San Diego Union TribuneSan Diego FYISan Diego Union Tribune, CA – 4 hours agoin San Diego County. Registered riders can ride the trolley for free with their bikes by showing their ride registration form. Information: www.ridelink.org …Source: news.google.com

1031 Timelines
Identification Period: Within 45 days of selling the relinquished property you must identify suitable replacement properties. This 45 day rule is very strict and is not extended should the 45th day fall on a Saturday, Sunday, or legal holiday.Exchange Period: The replacement property must be received by the taxpayer within the "exchange period," which ends within the earlier of . . . 180 days after the date on which the taxpayer transfers the property relinquished, or . . . the due date for the taxpayer tax return for the taxable year in which the transfer of the relinquished property occurs. This 180-day rule is very strict and is not extended if the 180th day should happen to fall on a Saturday, Sunday or legal holiday.
If you are considering a 1031 exchange please visit http://www.1031-nnn-properties.com/ for more in depth information on 1031 exchanges or to speak with an investment specialist about acquiring triple-net properties.

Hiring a Real Estate Attorney
Hiring a real estate attorney is the most important thing to do before becoming involved in real estate investing. Always use an attorney when getting started in such business like this. The right one will keep you on tract and help lessen your liability in your real estate investments. Make sure you check first his/her personal background and credibility too. You should ask the court house to review their cases in which those attorneys have been involved and most importantly whether they won or lost their cases.

If you are going to hire an attorney make sure he is a winner or at least won the majority of time.

Steps on how to get a good attorney:

- Talk to friends, family members and co-workers, or your state's Bar Association for

referrals.

- Talk to local real estate brokers for referrals.

- Call a local realtors association for referrals.

- Consult the yellow pages under Attorney: Real Estate.

- Prepare a list of questions pertaining to your situation. Most lawyers will answer simple

questions over the phone for free.

- Identify a number of possible attorneys and call each one.

- Ask how much each lawyer charges per hour, and request an estimate of the time

required to complete the tasks you require – looking over contracts, handling

disclosures, and helping with the closing.

- Choose an attorney.

There are several questions need to be answered by an attorney before hiring them.

What experience do you have in creative real estate investing such as subject to investing?

The Attorney should be open to and understand creative real estate investing. He must be very attentive to your needs; he lets you discuss your method of investing then responds in a forthright manner.

How much of your practice is in real estate?

It should be at least 30% to 50%. In smaller markets there would be less need for an attorney to devote all their practice to real estate.

Do you have other real estate investors as clients?

If so, ask if you can contact them for references.

What are your fees?

The price the attorney charges are not as important as how well he works for you, with you and gets the job done. The old proverb you get what you pay for applies here.

As I have said, when you are planning to be a real estate investor, it would be better if you consult with an attorney in your place or see if any of the attorneys who post on this board can prepare the proper paperwork you will need.
–

1031 Exchange: Why should you consider one?
Defer paying capital gains taxes.
Leverage.
A properly structured exchange can provide real estate investors with the opportunity to defer all of their capital gains taxes. By exchanging, the investor essentially receives an interest-free, no-term loan from the government.
Relief from property management. The lessee takes the responsibility to sublet and maintain the property allowing real estate buyers to avoid most of the day-to-day management headaches.
Upgrade or consolidate property.
Diversify. Own multiple properties rather than just one.
Relocation to a new area.
Differences in regional growth or income potential.
Change property types among residential, commercial, retail, etc.

If you are considering a 1031 exchange please visit http://www.1031-nnn-properties.com/ for more in depth information on 1031 exchanges or to speak with an investment specialist about acquiring triple-net properties.

1031 Exchange ? Boot
The term ?boot? refers to any non-like-kind property that is exchanged. The general rule is that if you receive more boot than you give up, you will have to pay tax on the net amount of boot you received.

The two most common types of boot:

Cash boot
In a traditional 1031 exchange, it is difficult to find two properties that are of exact equal value. So to make amends for, one party gives cash (boot) to the other to make up the difference. However, in a deferred exchange, since you are selling your property first and must reinvest all of the sale proceeds in the replacement property to fully defer the capital gains tax, you will generally not be receiving any cash boot. However, any portion of your sale proceeds that you do not reinvest in the replacement property will be considered cash boot to you and you will have to pay tax on that amount.

Mortgage boot
Mortgage boot is very common with 1031 exchanges. If the property you are selling has a mortgage on it, the relief of the mortgage will be considered boot to you. So to make sure you do not pay taxes on that boot, you must either have a bigger mortgage on your replacement property than you did on your relinquished property or you must invest your own money in the new property to make up the difference in the purchase price.

The formula for determining boot received is as follows:

Read more on 1031 Exchange – Investment Properties: 1031 Exchanges…

Listen Here or Post a Comment »