Tag: exchange.

First American Exchange is a really great company to use, with excellent resources and lots of great tips, so check out the link below. Did you know that your escrow company and your exchange company ARE NOT the same? You can use a number of exchange companies even if your escrow is at another company–it’s…
Read more

Source : http://firstexchange.com/January2013Newsletter   There has been some question as to whether taxpayers could use a §1031 exchange to defer the new 3.8% tax on investment income.  The IRS has issued proposed regulations that answer the question with a resounding “Yes”. The new tax is an additional 3.8% tax on “unearned income” which is generally defined…
Read more

Relinquished property: The property you are selling in an exchange. Replacement property: The property you are buying to replace the relinquished property in an exchange.

So you have an investment property you purchased for next-to-nothing and it’s appreciated to two- or three- times your initial investment. But back then when you were just starting out, you could barely afford the price tag, so you borrowed a big chunk because you were certain it was a sure thing. Or maybe you…
Read more

Interested in exchanging your vacation home for another closer to home?  Well, it may not be as simple as you think. A lot of tax payers are unclear on what the IRS rules are for this type of exchange, and think they qualify when they really don’t. Personal use is a big factor in distinguishing…
Read more