Las Vegas Real Estate
Guidelines for 1031 Tax deferred exchange

  1. EQUAL OR GREATER PROPERTY VALUE
    Replacement Property fair market value must be equal or greater than the fair market value of the Relinquished Property.  If you wish to acquire property of less value you may, but please speak with your tax advisor regarding possible tax consequences.

  2. USE ALL PROCEEDS FROM THE SALE
    You must use all of your exchange proceeds from the sale of the Relinquished Property to acquire your Replacement Property.  If you want to receive cash for personal use you have to make arrangements prior to the disbursement of sale proceeds by the escrow closer.  Under the exchange regulations you may not have the ability to control or direct funds in any way once proceeds have been sent to the exchange facilitator.  Remember... you should only use exchange proceeds to acquire real property.  Speak with your tax advisor regarding possible tax consequences of taking exchange funds for personal use.

  3. EQUAL OR GREATER DEBT
    Your Replacement Property mortgage (debt) must be equal or greater than your Relinquished Property mortage (debt).  You may acquire less or no debt on your replacement property but you should speak with your tax advisor regarding possible tax consequences of "Debt Relief".


The guidelines listed above are to be used to help you effectuate a tax-deferred exchange.  If you don't meet all the guidelines, you may still do an exchange, but you may be subject to tax on the difference.  The IRS has defined several black and white areas, but there are many more gray areas which are difficult to elaborate on without details about your specific tax situation.  I  recommend you seek specific tax advise from a tax advisor or attorney  when attempting a partial exchange.

Back to 1031 Exchange Main Page

Millie Fine
CENTURY 21 Aadvantage Gold
Toll Free 1-888-449-FINE
Home office 1-702-363-5599
E-Mail Millie!
millie@milliefine.com 

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