“We are seeing a lot more 1031 exchanges taking place” says Dave Owens, managing partner of AdvantaIRA Trust.
Fort Myers, FL (PRWEB) July 11, 2015
AdvantaIRA Trust released an informative video last month on “The Basics of 1031 Exchanges”. The short 3 and a half minute professionally filmed video had an outstanding amount of views after being released. The video discusses everything a real estate investor needs to know to complete a 1031 exchange.
A 1031 exchange is a tax saving strategy that allows investors to exchange a business or investment use property for another business or investment use property, deferring all capital gains, depreciation recapture tax, healthcare and state taxes. As long as the investor purchases a replacement property of equal or greater value of the relinquished property, 100 percent of the taxes will be deferred. The “Basics of 1031 Exchanges” video covers the rules and facts that real estate investors need to know in order to complete a 1031 exchange.
There are five basic rules discussed during the video. The first rule is the net selling price. The net selling price is the contract price minus the title fees and realtor commissions. When purchasing a replacement property, the exchangor must spend equal or greater value than the net selling price of the relinquished property to defer all taxes. Another major rule is that the property must be for investment or business use only. A 1031 exchange is not for primary or secondary homes. With 1031 exchanges timing rules apply. The entire exchange must be completed within 180 days. When the investor sells the relinquished property the timeline begins. Within the first 45 days the investor must identify up to three replacement properties, then by day 180 the exchangor must close on all intended properties. The final rule that is discussed during the video is regarding the qualified intermediary. Investors must use a qualified intermediary when performing a 1031 exchange. The qualified intermediary may not be any agent or fiduciary of the investor, which includes the investors’ realtor, attorney, CPA, etc.
“We are seeing a lot more 1031 exchanges taking place” says Dave Owens, managing partner of AdvantaIRA Trust. “After watching this short video you will feel confident when discussing or completing a 1031 exchange, and if you have any questions we would be glad to help.” The video can be found at http://bit.ly/1031ExchangeBasics. You may also call the 1031 exchange experts at 239-333-1031 to request a free copy of the video.
About AdvantaIRA Trust
AdvantaIRA Trust is a self-directed IRA administrator that provides tax-deferred and tax-free investment opportunities, superior customer service, and educational tools to assist investors in realizing the maximum benefits possible within IRAs. AdvantaIRA makes it easy to use self-directed retirement plans to invest in assets that the individual investor knows, understands, and can control.
About Dave Owens
Dave Owens is the managing partner at AdvantaIRA Trust in Fort Myers, Miami, Gainesville, New England, and the Florida Panhandle. Owens opened the AdvantaIRA Trust headquarters in Fort Myers, FL in 2003. His background as a certified public accountant, combined with a long history of personal retirement self-direction, provides his audiences and clients with solid advice and practical solutions to their IRA investment questions. Dave holds a BS in accounting from Purdue University. He also earned the prestigious Certified Exchange Specialist designation through the Federation of Exchange Accommodators.