I assist many of my clients with 1031 exchanges and provide 1031 exchange services to non-clients. Best advice I can give is to have either an attorney or CPA (or both, really) that works with 1031/1033 exchanges on a regular basis to guide you through it and make sure it is done properly. Like most things that land on my desk, it's a lot less expensive to do it the right way first instead of having to "fix" it down the road. Beware, there is quite a bit of misinformation on this thread...
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If you think think your president wont get rid of capital gains or raise taxes, you can 1031. I just wouldn't make it your future residence.
CPA told me to just pay the taxes now while you know what they are. Assuming they wont reduce taxes. If you never plan on selling the other property, then you wont have to worry about taxes, so then use a 1031 exchange.
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Originally posted by TildenHunter View PostYou are correct. I don't even think it is possible to take a portion and roll it forward and be able to be taxed on a portion. I have been told it is an "all or none" deal. I too would consult a CPA that is familiar with the most up to date regulations. I just assumed if they were paying 10x over what he had in the property that he was more then likely the outright owner.
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Wow great responses. I see I'm not the only one not so clear on this.
Both properties can be treated as Lake Houses easily.
The new one is 100K more compared to my sell. So I'm coming up with another 100k cash on my end.
When and if I do sell the new purchase, will I then have to deal with these taxes? They don't just go away huh. So they could be as much as 40% someday...if I sell?
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Originally posted by The Crippler View PostI assist many of my clients with 1031 exchanges and provide 1031 exchange services to non-clients. Best advice I can give is to have either an attorney or CPA (or both, really) that works with 1031/1033 exchanges on a regular basis to guide you through it and make sure it is done properly. Like most things that land on my desk, it's a lot less expensive to do it the right way first instead of having to "fix" it down the road. Beware, there is quite a bit of misinformation on this thread...
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Originally posted by Spearchunker View Post
Its 1000% more than what I have in it over last 2 years including purchase.
Golf clap... That's a huge win. Anything lake front or close is completely insane currently. My mom is in real estate on Lake Whitney and it's out of control. Their neighborhood hadn't sold a lot in years and probably only 2-3 houses built in the last decade. The developer has sold a boat load in the last 18 months and for silly money.
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Originally posted by TeamAmerica View PostIt is certainly allowed to do a partial 1031 (new property is lower value than sold property). But the amount of any difference is 100% taxable. You don't get to allocate cost basis to it.
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Originally posted by Spearchunker View PostWow great responses. I see I'm not the only one not so clear on this.
Both properties can be treated as Lake Houses easily.
The new one is 100K more compared to my sell. So I'm coming up with another 100k cash on my end.
When and if I do sell the new purchase, will I then have to deal with these taxes? They don't just go away huh. So they could be as much as 40% someday...if I sell?
My guess is that the "they" will (try to) limit the amount eligible for 1031 deferrals. They won't eliminate it altogether. They are targeting the gains for the "rich". Just don't get too rich and you'll be fine! What lake are you looking at for the new place?
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Originally posted by The Crippler View PostI assist many of my clients with 1031 exchanges and provide 1031 exchange services to non-clients. Best advice I can give is to have either an attorney or CPA (or both, really) that works with 1031/1033 exchanges on a regular basis to guide you through it and make sure it is done properly. Like most things that land on my desk, it's a lot less expensive to do it the right way first instead of having to "fix" it down the road. Beware, there is quite a bit of misinformation on this thread...
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Originally posted by The Crippler View PostI assist many of my clients with 1031 exchanges and provide 1031 exchange services to non-clients. Best advice I can give is to have either an attorney or CPA (or both, really) that works with 1031/1033 exchanges on a regular basis to guide you through it and make sure it is done properly. Like most things that land on my desk, it's a lot less expensive to do it the right way first instead of having to "fix" it down the road. Beware, there is quite a bit of misinformation on this thread...
We just did one a year ago. The last sentence above is dead on. :-)
Sent from my iPhone using Tapatalk Pro
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Originally posted by TeamAmerica View PostIt is certainly allowed to do a partial 1031 (new property is lower value than sold property). But the amount of any difference is 100% taxable. You don't get to allocate cost basis to it.
We are about to do one on a property we bought through an exchange, its too complicated for me to worry about lol.
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Originally posted by M16 View Post
Carl Pikus was great to deal with.
Originally posted by The Crippler View PostI assist many of my clients with 1031 exchanges and provide 1031 exchange services to non-clients. Best advice I can give is to have either an attorney or CPA (or both, really) that works with 1031/1033 exchanges on a regular basis to guide you through it and make sure it is done properly. Like most things that land on my desk, it's a lot less expensive to do it the right way first instead of having to "fix" it down the road. Beware, there is quite a bit of misinformation on this thread...
It's amazing how many 'experts' go on the internet and guess....
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