1031 Exchange, 1031 Exchange Rules, Capital Gains, Capital Gains Tax |1031x.com

Chris Sayre

1031 Exchange

RULES FOR 1031 EXCHANGE IN A NUTSHELL

True For Both Types Of 1031 Exchanges (Forward and Reverse)

  1. Old and new properties must be held for investments or for business.
  2. The exchanger must have a written exchange agreement with a Qualified Intermediary (QI) before closing.
  3. All real estate is “like-kind” to all other real estate.
  4. New property must be equal or up in fair market value (FMV) and in equity.
  5. Any cash taken out is taxable.
  6. Person on title of old must be person on title to new.
  7. OK to exchange multiple old properties for one new property or vice versa. Fractional interest is OK.
  8. Owner financing handled outside of exchange.
  9. “Related Party” transactions have additional requirements.
  10. Basis of old carried forward into new, with adjustments.

In a Forward exchange, the Exchanger must:

  • Not receive funds from sale.
  • ID new property, in writing, within 45 days.
  • Close on new property within 180 days.

In a Reverse exchange, Exchanger must: 1031 Exchange Process

  • Not hold title to both properties simultaneously.
  • “Park” either the old or new property with QI.
  • QI cannot hold title to either property for more than 180 days.
  • ID old property within 45 days if new property is “parked.”
  • Provide funding to purchase new property.

Please give us a call 1-888-899-1031 to discuss your exchange, or email us at infox@1031x.com

1031 Tax Calculator

1. Calculate Net Adjusted Basis:
State Capital Gain Rate: %
Original Purchase Price $
plus Improvements +$
minus Depreciation -$
= NET ADJUSTED BASIS =$
2. Calculate Capital Gain Sales Price of Property:
Sales Price $
minus Net Adjusted Basis -$
minus Costs of Sale -$
= Capital Gain =$
3. Calculate Capital Gain Tax Due:
Recaptured Depreciation (25%)
(5 taxed at 25%)
$
plus Federal Capital Gain Tax
(Remainder:$-100 - $5 taxed at 15%)
+$
plus State Capital Gain Rate: +$
= TOTAL ESTIMATE TAXES DUE =$
Simple Exchange Fee at 1031x.com -$
=YOUR SAVINGS =$

When it comes to 1031 Exchange Rules, we are the experts: 1031 Exchange Properties, Like Kind Exchange, House Swap, Investment Real Estate, 1031 Tax Laws, Escrow Laws, Tax Deferral, 1031 Exchange Forms, 1031 Exchange IRS help, 1031 Energy, and more. Swap Home and Real Estate Investment specialists. Maximize the benefits of your 1031 Property Exchange or 1031 Property Swap, Defer Taxes.

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