Las Vegas Real Estate
Guidelines for 1031 Tax deferred exchange
- 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.
- 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.
- 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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