Tax Free Exchanges (Turn your speaker on and click on any of following questions)

Need Immediate Help - Call 877-800-1040 or email


Tax Deferred Exchange Home Page

1.  Can I exchange for property of less value?

2.  Do I have to exchange for the same type of property?

3.  Does the exchanges have to been done simultaneously?

4.  What is a QI?

5.  Will IRS audit a tax free exchange?

6.  Can I change the name on the title of the new property?

1031 Exchange Escaping the Certainty of Taxes
Ted Belfour


'In this world', said the great Benjamin Franklin, 'nothing is certain but death and taxes'. While modern medicine continues to work on a cure for mortality, 1031 exchanges offer a valuable mechanism against the foibles of the taxman. Allowing the exchange of one property for another, this property market trend can help you hold on to money that might otherwise end up with the IRS. How do you know whether you are eligible to take advantage of this great property trend?


The first stipulation is that the two properties involved in the swap be in use for 'trade or productive purposes', that is that they are moneymaking concerns of some kind, such as a rental property or holiday home. The property intended for swapping must also reside in the US, though it can be located at any point within.


1031 exchanges necessitate the involvement of what are known as Qualified Intermediaries, who deal with the paperwork involved in the switch, and assume a role akin to a property purchaser. The property to be exchanged is handed over to this intermediary, until the property owner locates a new property, at which point the switch can be made.


This type of property exchange operates under strict guidelines and an exacting timetable. Once the original property is sold, a list of possible replacements must be supplied to the intermediary with forty-five days, while the exchange itself must be completed within one hundred and eighty. The title to both properties must remain intact throughout the entire process, so this is not the time to dissolve any business partnerships that might be involved. Any deviance from these strictures can threaten the entire exchange process.


The properties to be exchanged must also be what is described as 'like-kind', meaning that they are roughly comparable. This does not mean that the two properties must echo one another entirely, it simply refers to the fact that the property relinquished and the one to be taken up must both be suitable for use in a similar business or investment related way.


1031 exchanges are not for use on residential homes, and so, for many people, are of little value. But if you own a business property and would like to move premises without losing a sum of money to the taxman, then a 1031 exchange might just be the right choice for you.



Dave is the owner of http://www.1031-exchange-explained.info and http://www.1031-exchange-specialist.info websites providing information on 1031 exchanges.




Home
Latest Tax Free News
Tax Free Articles
Additional Resources
Want to Join the Moms?
Questions for CPA Moms?


Death & Taxes

We have Information to Help You with Either


Got Question for about a Tax Free Exchange?

IRS wants you to retire Financially Free!     We will answer your questions and give you options about how to become Financially Free when you retire

Tax answers/options when you sell your Home.      We will answer your questions about the tax free home sales and give you options on tax free exchanges

So, You got a letter from IRS?  We can help.    Letters from IRS are scary. We will answer your questions at no charge.

S-Corp, LLC, C-Corp, Partnership - Your Choice?    Selecting the correct Business Entity is confusing.  We will give you the tax options of each Business Entity.

How not to pay taxes when you sell income property.    We will explain how to do a tax free exchange & not pay taxes when you sell your income property.

Complete this form for Carl's Tax Tip on "How to get Tax Free Cash out a Tax Free Exchange"

E-mail Address: *
Your First Name *
Your City *
Your State *

* Required


More Information Less Taxes

Need Cash Quick?
   Same Day
   Next Day - 37,127 Locations
   Refund Anticipation Loan
   Earned Income Credit

Tax Deductions
     Day Care
     Moving
     Medical & Dental
     Education
     Educator Expense
     Divorce & Alimony
     Donating Car to Charity

Personal Finance
   Retire Buying Tax Liens
   Borrowing from your 401k
   Your Credit Report
   Credit Repair
   Your Social Security
   Social Secuity Disability
   Indentity Thief
   Reverse Mortgages
   Bankruptcy

Tax Preparation Specilities
 Truckers - Long Haul/Local

Where is my Refund?
   Electronic Filing

IRS want to give you:
    Earned Income Credit
    Adoption Credit

Business Expenses
    Mileage
    Office in Home
    Business Deductions

Latest News



 

 

 

 

 

 

 

 

Privacy Policy ......... About Us  ......  Disclaimer ..... Copywrited 2005 - 2006 & Developed by  Tax Moms