- Are There Any 1031 Exchange Property Listings in Las Vegas for Commercial Real Estate?
- 1031 Exchange Property Listings Las Vegas Explained?
- How Can I Benefit?
- How Can RE/MAX Las Vegas Help?
- Can I Use 1031 Exchange to Buy an Apartment in Las Vegas?
- Are There Any 1031 Exchange Properties Available in Specific Zip Codes in Las Vegas?
- 6 Very Important 1031 Exchange Rules
- Now, on to the rules:
- Rule #2 › 45-day identification time limits
- Rule #3: 180-day purchase time limit
- Rule #4 › Use of a Qualified Intermediary
- Rule #5 › Titles must match
- Rule #6 › Reinvestment of sales proceeds
Are There Any 1031 Exchange Property Listings in Las Vegas for Commercial Real Estate?
1031 Exchange Property Listings Las Vegas Explained?A 1031 exchange, also known as a like-kind exchange, is a tax-deferred exchange of investment or business properties.It allows an investor to sell a property and then reinvest the proceeds from the sale into a similar property, without incurring any capital gains tax on the transaction.To qualify for a 1031 exchange, the properties involved must be held for investment or business purposes, and they must be “like-kind,” meaning that they must be similar in nature or character.There are specific rules and guidelines that must be followed in order to qualify for a 1031 exchange, including deadlines for identifying and acquiring the replacement property, as well as rules for how the proceeds from the sale must be held during the exchange process.It’s important to work with a qualified professional, such as a tax advisor or real estate attorney, to ensure that you are following all of the necessary rules and guidelines in order to qualify for a 1031 exchange.Because the entire 1031 exchange property listings Las Vegas explained transaction is treated as an exchange and not a simple sale, the taxpayer is able to qualify for a deferred gain treatment.
How Can I Benefit?Because the 1031 exchange property listings Las Vegas is treated as an exchange and not a sale, it is not necessary to pay capital gains tax, which is currently 15%, but may be as high as 20% in the future.Additionally, you will save on federal and state taxes.
How Can RE/MAX Las Vegas Help?We offer the expertise needed to help you smoothly execute your 1031 Exchange Property Listings Las Vegas.With tight timelines and strict rules to follow, you need a partner who provide you with the most investment property options and who can assure flawless execution.
Can I Use 1031 Exchange to Buy an Apartment in Las Vegas?
Are There Any 1031 Exchange Properties Available in Specific Zip Codes in Las Vegas?
6 Very Important 1031 Exchange Rules
If you are planning to complete a Section 1031 like-kind exchange, you need to be sure that you know and understand the rules.While there is no substitute for professional advice, this information will get you moving on your way to completing your exchange and steering clear of the ire of the IRS.Before we begin, it is prudent to lay out just exactly what a “1031 exchange property listings Las Vegas” is.This process gets its name form Section 1031 of the Internal Revenue Code.There are two sets of rules in this code: one deal’s with real property (land, buildings, and other structures) and the other deals with personal property (boats, aircraft, cattle, etc.).This article relates only to real property.As it relates to real property, IRS Section 1031 exchange property listings Las Vegas allows holders of business or investment property to delay paying capital gains on the disposition of their property so long as the rules are followed.This is a powerful tax and investment strategy as well as estate planning tool.Theoretically, an investor could continue deferring capital gains on property until their death thereby avoiding capital gains altogether (although estate taxes may have to be paid).
Now, on to the rules:Rule #1 › Both the “old property” and the “new property” must be held for investment or business useIn the early days of like-kind exchanges, getting past the “similar use” rule was difficult.If you had a two-story brick apartment building that you wanted to exchange, you had to find another person with a two-story brick apartment building to “swap” with.The two of you would get together and simultaneously “swap” titles.In the late 70s and early 80s, T.J. Starker changed all that with a series of court cases that went all the way to the Supreme Court.These cases cleared the way for Congress to rewrite code section 1031 exchange property listings Las Vegas in 1991.The resulting code allowed property owners to exchange any property held for investment or business use for any other property held for business or investment use.Now, that two story brick office building can be exchanged for raw land, a warehouse, or even partial ownership of a larger office building.The only requirement is that the property be for investment or business use.1031 exchange property listings Las Vegas does make a distinction between investment property and property held for resale.Generally, “fix and flip” properties do not qualify for tax-deferred 1031 exchange property listings Las Vegas.Intent is an important component of qualifying your property for favorable exchange treatment.As such, most industry professionals agree that a holding period of one year and one day would satisfy the IRS that the property was an investment.The underlying idea is that by holding the property for this period, you would not be converting short term capital gains into long-term capital gains by completing the 1031 exchange property listings Las Vegas.(The IRS really frowns on attempting to convert short-term gains into long-term gains in these situations.)
Rule #2 › 45-day identification time limitsFrom the day that you close on the sale of your old property, you have 45 calendar days to 1031 exchange explained identify your replacement property.Being calendar days, the limit includes holidays, weekends, and vacations.This time period is not negotiable and the IRS will not make exceptions to this rule.Be sure that your 1031 exchange property listings Las Vegas explained Qualified Intermediary (QI) is available when you are ready to identify if you are getting close to the end of your 45-day identification.If you go beyond the 45-day limit for your identification and continue with the exchange, your whole exchange will be disqualified and penalties and taxes are sure to ensue.If you change your identified property list after 45 days, you (and likely your QI) will go to prison.The list that you develop during this period of time has some stipulations associated with it as well.For starters, if you identify three properties or less, there is no limit on the total value of property that you can identify.For example, if John sells a building for $450,000 he can identify $25,000,000 or more in replacement property so long as there are not more than three properties included in this total dollar value.There is no limit on the dollar value.However, if John 1031 exchange property listings Las Vegas identifies more than three properties, he is subject to the 200% rule.This rule states that John cannot identify more than $900,000 ($450,000 X 200%).If he goes over that limit, the exchange will be disqualified.For obvious reasons, it is best to keep the list to three or fewer properties in most cases.Your list is given to your QI whose job it is to receive the list on behalf of the IRS.The properties on the list must be identified in such a way that an IRS agent could request the list and drive to each of the listed properties.It is recommended that you give the complete physical (not mailing) address of each property to be 1031 exchange property listings Las Vegas explained identified.Be sure that you verify the address before turning in your list.
Rule #3: 180-day purchase time limitFrom the date that you close on your property sale, you have 180 days to close on your replacement property.Take note that the identification period and closing period run concurrently.When your identification period is up, you will only have another 135 days left to close.The day of closing is when title is officially passed to you.Like the identification time limit, there are no extensions and no exceptions.
1031 Exchange Property Listings Las Vegas