Posted by JPL on August 29, 2005 at 22:18:34:
Not as hard as it sounds. It’s always recommended that you find your replacement property/ies first. New property’s loan must be >= to the loan (debt replacement) on the original prop and there are several requirements about valuations, consult an intermediary ASAP. Also you have 45 days to identify your new properties and 180 to close on all your new purchases. Hope this helps.
1031 exchanges - Posted by Ty
Posted by Ty on August 29, 2005 at 10:37:58:
In a nutshell, can someone explain to me exactly how 1031 exchanges work. I have a client that has a 4 plex that has a considerable amount of equity in it. He is trying to avoid the capital gains tax and get out of the investment property business at the same time. Any suggestions?
Re: 1031 exchanges - Posted by dealmaker
Posted by dealmaker on August 31, 2005 at 15:05:16:
Well, he has a lot of equity. But does he have a lot of gain? I’ve seen people who had a lot of equity because they had put a lot into a place.
He has to exchange for “like kind” property. So he’s going to end up with investment property of some kind. Maybe not a 4 plex, maybe a car wash or two.
dealmaker