Top Ten 1031 Misconceptions for 2019


  1. “Like-kind” means I must exchange the same type of property, such as an apartment building, for another apartment building. FALSE
  2. A 1031 Exchange means that the sale and the purchase have to happen at the same time. In other words, the seller has to find someone willing to swap properties.FALSE
  3. My attorney or CPA can handle the exchange for me as my Qualified Intermediary.FALSE
  4. To do a 1031 Exchange I just need to file a form with the IRS with my tax return and “roll over” the proceeds into a new investment. FALSE
  5. I can only defer my capital gains tax via a 1031 Exchange. FALSE
  6. All of the funds from the sale of the relinquished property must be reinvested. NOT NECESSARILY
  7. You must replace the debt that you had on the relinquished property with at least the same amount of debt on the replacement property. FALSE
  8. Opportunity Zone Funds are another alternative to defer my taxes. POSSIBLY
  9. When I sell my personal residence I need to set it up as a 1031 Exchange. FALSE
  10. If I sell property I can only exchange into one property. FALSE

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