summery of the 1031 tax
deferred exchange Thomas S.
O'Rorke REALTOR® Licensed
Real Estate Broker ALABAMA FLORIDA MISSISSIPPI Gulf
Shores, Alabama Direct
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• Tom@BeachBuys.com Welcome
to beachbuys.com The most
comprehensive real estate web site on the Alabama gulf
coast. Let me help you find your dream
property. THE
1031 TAX DEFERRED EXCHANGE If you
own property that you are considering selling, you may
want to investigate the 1031 tax deferred exchange. By
utilizing this process authorized by the IRS, you may
defer payment of capital gains taxes that would normally
be due upon the sale of your property, by reinvesting the
equity in another similar property. Here are
some basic guild lines: 1. You
must "declare" your intention to utilize this exchange
prior to selling your property. 2. Once
the property sells, the funds are held by a third party
(CPA, attorney, title company). You have no access to the
funds. 3. You
have 45 days from the date of your sale in which to
identify the property you wish to purchase with the
proceeds from your initial sale. 4.
Attorneys do not always agree on how many properties you
may identify. Some say one others two or more. Take your
attorney's advice. 5. You
must use an attorney other than your regular attorney. It
must be an arms length transaction. 6. You
have 180 days from the closing of the sale on your
initial property to close on the identified
property. 7.
Contact an attorney experienced in these
transactions. 8.
Several attorneys in our area specialize in this type of
transaction. Contact me if you need help in locating
one. Condos
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