Understanding like kind_property
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saferforyourlife.info http://www.saferforyourlife.info/understanding-like-kind-property/ Understanding “Like Kind” Property Understanding "Like Kind" Property Property may only have eligibility f or an exchange if it complies with the 1031 Exchange Rule that's written into the US treasury and tax code regulations. This rule excludes residential properties, but 2nd houses that are hired out f or revenue might be admissible. Examples of "like kind" real estate that would qualif y f or a 1031 exchange include a mall that is changed f or land, an of f ice that is exchanged f or a shopping mall, a house block that is swapped f or a commercial building, or a property hired by a single f amily that is exchanged f or a Tic ( renters in common ) property. There's some private property that can qualif y f or a 1031 exchange, like a painting, but personal houses are excluded. Only a qualif ied Third party ( QI ) may handle the proceeds of the sale of the f irst property, otherwise all proceeds will be considered taxable. The def initions of "like kind" properties are quite broad, and your tax adviser will be well placed to give you more examples particular to your wants. It is also important to note this doesn't only apply to money. Regardless of whether you don't physically receive the cash, but your responsibility on the bought property decreases, you will continue to be taxed.
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Transcript of Understanding like kind_property
saf erf o ryo urlif e .inf o http://www.saferforyourlife.info /understanding-like-kind-property/
Understanding “Like Kind” Property
Understanding "Like Kind" Property
Property may only have eligibility f or an exchange if it complies with the 1031 Exchange Rule that's writteninto the US treasury and tax code regulations. This rule excludes residential properties, but 2nd houses thatare hired out f or revenue might be admissible. Examples of "like kind" real estate that would qualif y f or a1031 exchange include a mall that is changed f or land, an of f ice that is exchanged f or a shopping mall, ahouse block that is swapped f or a commercial building, or a property hired by a single f amily that isexchanged f or a Tic ( renters in common ) property. There's some private property that can qualif y f or a1031 exchange, like a painting, but personal houses are excluded. Only a qualif ied Third party ( QI ) mayhandle the proceeds of the sale of the f irst property, otherwise all proceeds will be considered taxable. Thedef init ions of "like kind" properties are quite broad, and your tax adviser will be well placed to give you moreexamples particular to your wants. It is also important to note this doesn't only apply to money. Regardlessof whether you don't physically receive the cash, but your responsibility on the bought property decreases,you will continue to be taxed.
