If seller gets a good price for their property and makes a profit, they can take advantage of a Delayed 1031 Tax Deferred Exchange, which gives them 6 months to reinvest those profits on another property.
Millbrae, CA (Vocus/PRWEB) March 09, 2011
Millbrae Real estate agent Wayne Gomes says that a Delayed 1031 Tax Deferred Exchange allows property owners to sell their investment property and take as long as 180 days to move the profits into a rental home, apartment building, commercial real estate, or any other investment property (including land) to avoid paying taxes on the profits.
“If seller gets a good price for their property and makes a profit, they can take advantage of a Delayed 1031 Tax Deferred Exchange, which gives them 6 months to reinvest those profits on another property,” says Bay Area real estate agent Wayne Gomes.
Gomes says a Delayed 1031 Tax Deferred Exchange enables sellers to move their profits into single or multiple properties, as long as seller meets the IRS 1031 Tax Deferred Exchange basic rules.
There are two key timing rules. The first requires the seller, within the first 45 days after the close of escrow on the relinquished property, identify up to three prospective investment properties that they will purchase. The second requires the seller, within 180 days from the close of escrow on the relinquished property, to close escrow on one of the three identified properties.
In order to avoid any capital gains taxes, the purchase price of the acquired property or properties must be equal to or higher than the selling price of the relinquished property.
“There are a number of other rules, so it is best to consult with a real estate professional before making a move,” warns Gomes.
For more information about a Delayed 1031 Tax Deferred Exchange or inquiries regarding selling a home, apartment building, or investment property contact Wayne Gomes - Broker Associate at Coldwell Banker at 650-558-4318.
To learn more about Wayne, visit his website at waynegomes.com or connect on Facebook at http://www.facebook.com/waynegomes2.
About Millbrae Real Estate Agent Wayne Gomes
With over thirty years of experience under his belt, Wayne Gomes has learned the ins and outs of real estate by successfully selling homes, condos, apartment buildings, and commercial real estate, including retail and industrial properties since 1978. Located in the heart of Burlingame, Wayne helps people buy and sell real estate in San Bruno, Millbrae, and all other Peninsula communities ranging from San Francisco to Redwood City.
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