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1031 Exchange

If you are interested investing in Steamboat Springs real estate market, 1031 Exchange might be something to consider. This is a powerful tool used by many successful real estate investors.

If you already own a second home, rental property, or any other kind of real estate investment, 1031 Exchange might be great tool for you also.

Internal Revenue Code section 1031 of the U.S. Internal Revenue Code allows owners of certain kinds of assets, usually some form of real estate like building or land, to defer capital gains taxes on any exchange of like-kind properties. After you sell real estate, and the proceeds of the sale are reinvested in a like-kind real estate asset , then no gain or loss is recognized, allowing the deferment of capital gains taxes. Capital gains taxes would otherwise have been due on the first sale. Please follow this link if you would like to search homes for sale in Steamboat Springs, CO.

How much time do you have to do 1031 Exchange?
From the time of closing, investor has 45 days to identify replacement like-kind property. Like-kind property means, real property must be exchanged for real property, personal property must be exchanged for personal property. Investor has 180 days after closing, to acquire replacement property. As a result, proceeds of the sale must be reinvested in a like-kind asset within 180 days.

How can I help you with 1031 Exchange?
After closing, you have 45 days to identify like-kind property. That is the most difficult part of doing a 1031 Exchange.I’d be happy to assist you in finding property that would best fit your needs within allowed time frame. The IRS is strict when it comes to not allowing any extensions. I will also make sure the closing will happen within the allowed time frame.

Example of 1031 Exchange:
An investor buys investment property for $100,000. Three years later, investor sells the property for $175,000. Without doing 1031 Exchange, investor would have to pay capital gains taxes on $75,000 capital gains. If investor reinvests $175,000 in another like-kind property, and decides to use 1031 Exchange, investor does not have to pay any taxes now.

I would be happy to assist you with any 1031 Exchange transactions. Please contact me and I’ll be happy to discuss different options available to purchase or sell Steamboat Springs property.-970.846.1574

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