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Taxpayers who hold real estate as inventory, or who purchase real estate for re-sale, are considered "dealers". These properties are not eligible for Section 1031 treatment. However, if a taxpayer is a dealer and also an investor, he or she can use Section 1031 on qualifying like properties. Personal use property will not qualify for Section 1031.
A like-kind exchange under United States tax law, also known as a 1031 exchange, is a transaction or series of transactions that allows for the disposal of an asset and the acquisition of another replacement asset without generating a current tax liability from the sale of the first asset. A like-kind exchange can involve the exchange of one ...
An investor decides to sell investment property and do a 1031 exchange. He contacts a qualified intermediary (QI) and they enter into an agreement. The investment property is placed on the market. An offer to purchase the investment property is accepted and signed by the QI. Escrow for the sale is opened, and a preliminary title report is produced.
Unless the tax credit is extended, homeowners who make improvements in 2033 and 2034 will only be able to claim 26% or 22% of the cost of the project, respectively.
With American homeowners collectively sitting on a whopping $17.2 trillion in home equity as of 2024, you may be considering tapping into this resource to create the home you’ve always wanted.
Consult a real estate agent or an appraiser as to which sort of renovations really enhance home value and appeal to buyers and what sort of projects offer the most bang for the buck. Generally, a ...
The role of a QI is defined in Treas. Reg. §1.1031(k)-1(g)(4). Under IRC Section 1031 an owner of business or investment property may exchange that property for other like-kind property within a statutorily mandated period of time, and defer current recognition of gain on the sale of the old property.
Rocket Loans reports on the financing options homeowners have available to them for home improvements.