Section 1031 For Clients Summary
- 1. ©1995-2008. Edmund & Wheeler, Inc. all rights reserved. The information contained in this presentation is for informational purposes only and does not constitute tax, legal or accounting advice.
- 2. Shhhhh. Don’t tell anyone. You are eligible for interest free loans from the US Government… … for as long as they’d like. … for as many times as they’d like.
- 3. What’s In It For You? Defer 100% of capital gains taxes including: Federal - 15% State - 3% to 9% (Depending on State) Depreciation Recapture - 24% Use the deferred gains to enhance your buying power Swap ‘til you Drop – You can exchange over and over again
- 4. What’s In It For You? Exchange into passive real estate investments Tenants - in - Common Oil & Gas Exchange into a security UPREITs Exchange into a guaranteed income Structured Sale Exchange into your dream home Follow the rules!
- 6. Section 1031 is used in less than 10% of the transactions that it should be!
- 7. Section 1031 is about Relocation and Reallocation of Assets without Paying Capital Gains!!!
- 8. Any Real Property Can Be Exchanged For Any Other Real Property!
- 9. Section 1031 can be used to dramatically increase the value of holdings by leveraging Uncle Sam’s money.
- 10. Nearly every tax paying entity qualifies for a Section 1031 Exchange!
- 11. Personal property can also be Exchanged. “ Like-kind” is literal!
- 12. There are replacement options available for Section 1031
- 13. Tenants-In-Common Management Free Real Estate Investments in Grade A Properties
- 14. UPREIT Exchange into a Real Estate Investment Trust (A Security)
- 15. Oil & Gas A timely alternative to owning real-estate with the same benefits and flexibility.
- 16. Structured Sales An annuity based “Paycheck” for failed exchanges and business transfers.
- 17. Does Your Situation Qualify? http://www.section1031.com/qualify/WhatQualifies.htm This tool can assist you in determining if your particular circumstances could benefit from Section 1031.
- 18. Also… Time limits of 45 and 180 days Properties must be “Like-Kind” Business or Investment Purpose Relinquished and Replacement Properties held by same taxpayer Exchanges can be done either forward or reverse
- 19. If you are considering an Exchange…. Contact a professional BEFORE closing on your property: Your Accountant Your Attorney Your Financial Advisor A Qualified Intermediary Do your homework on Section 1031