Site Map of repts.com
1031 tax deferred exchange 1031 exchanges
Exchange less desirable properties for more attractive properties. Defer All Capital Gain Taxes. Avoid depletion of equity resulting from payment of taxes upon the sale of property. Based on the "Continuity of Investment" principle, the Exchanger may invest the entire equity accrued in his or her investment property in the Replacement or "trade" property.

1031 exchange

ARE YOU CONSIDERING SELLING YOUR HOME? CALL JOANN JORDAN, PRINCIPAL BROKER, SRES, e-PRO, with 25 years experience in CA & HI, FOR A FREE CMA REPORT TO SEE WHAT YOUR HOME IS WORTH. Reduced Commission. Cell: (760) 450-6252; Office: (760) 435-0078; Home Ofc: (760) 722-6562

A tax-deferred Exchange is a transaction involving the transfer of one piece of investment or income property and the receipt of a like-kind property which will be used as income or investment property. If you meet this criteria, you can exchange any type of real property for any other type of real property.

To Fully defer all capital gain taxes on any real property held for INVESTMENT or used in a TRADE or BUSINESS the Exchanger must acquire "new" Replacement Property that:
  • Is equal to , or greater than, the NET sales price (net of closing costs) of the "old" relinquished property, and
  • Uses an EQUITY amount that is equal to or greater than the equity from the sale of the "old" relinquished property as the DOWN PAYMENT on the replacement property.

The Investor who intends to continue to own real property would naturally want to use all of their equity from the sale of the relinquished property to acquire the replacement property, rather than paying Federal and State taxes on the gain.
TYPE OF EXCHANGE: The most common type of exchange is the "Delayed Exchange" since it gives the Exchanger the most flexibility with up to 180 days to purchase a replacement property. This is also known as the "Starker" Exchange.
Relinquished Property is the "old" property. Prior to closing the sale on this property, the Exchanger enters into the Exchange Agreement, an Assignment is executed prior to closing and the Intermediary assumes the Exchanger's Purchase Agreement. The Intermediary instructs the Escrow Officer or Closing Attorney to directly deed the property, from the Exchanger to the Buyer. Proceeds are transferred directly to the Intermediary, thereby protecting the Exchanger from actual or constructive receipt of funds.

Replacement Property is the "new" property purchased. Boot refers to any property received in an exchange that is not considered "like kind" AND MAY BE A TAXABLE EVENT. Cash boot refers to receipt of cash.

Mortgage Boot or Debt Relief is a term describing the exchanger's reduction in mortgage liabilities on a "new" replacement property.
Personal Property Boot. Any personal property received is also considered boot.

ARE YOU CONSIDERING SELLING YOUR HOME? CALL JOANN JORDAN, PRINCIPAL BROKER, SRES, e-PRO, with 25 years experience in CA & HI, FOR A FREE CMA REPORT TO SEE WHAT YOUR HOME IS WORTH. Reduced Commission. Cell: (760) 450-6252; Office: (760) 435-0078; Home Ofc: (760) 722-6562
Contact JoAnn Jordan, Principal Broker, for extraordinary professional service!
This month's featured NEW listing...view color photos of interior rooms, view, exterior, floor plan and full description.
Contact JoAnn Jordan, Principal Broker, for extraordinary professional service when seeking Buyer Representation
Contact JoAnn Jordan, Principal Broker, for extraordinary professional service when selecting a Realtor to market your property
Search MLS Oceanside, CA
Search MLS San Diego County
All you ever wanted to know about Oceanside, California...a fantastic affordable beach community!
Contact JoAnn Jordan, Principal Broker, for extraordinary, professional service ... representing Buyers or Sellers
JoAnn Jordan's 25 year background in real estate and client testimonials