Skip to content

Posts from the ‘Real Estate’ Category

Aug 17

3 Comments

1031 Tax Deffered Exchanges

Thanks to the “1031 Tax Deferred Exchange” real estate investors can essentially exchange investment property for a rental cottage at the beach and defer paying taxes on the realized gain until the property is sold in a subsequent taxable transaction.  The secret is knowing what type of property you may exchange, and staying within the proper time constraints.You must “identity” your replacement property within 45 days from the close of your first property and close on the replacement property within 180 days.  Sound confusing?  It’s not.  Give us a call and we’ll walk you through the process.

We even have information on a Reverse 1031 Tax Deferred Exchange (when you buy first, then sell.)  Sound complicated?  It can be – that’s why we’ll put you in touch with the expert 1031 exchangers.
The Six Basic Rules for a successful exchange are:

  1. Held for Investment – Property must be investment property – i.e. rental property, office building, apartment, vacant lot, mini-warehouse, strip mall and more. (NOT YOUR HOMESTEAD!)
  2. IRS Requires Qualified Intermediary (QI) – A professional intermediary facilitates the exchange.  (Don’t worry.  We can put you in contact with the experts).
  3. 45 Days – You have 45 days from the closing of your relinquished investment property to pick out your dream condos/home.
  4. Avoid Receipt of Sale Proceeds – You cannot accept the proceeds from the sale.  This money goes into an escrow account until you close on the replacement (new) property.  It is imperative that your hands not touch the proceeds! (unless you want the proceeds to be taxed!)
  5. Trade Equal or Up – Equal value and equity. If you buy something less in price, you will pay taxes on the portion you did not roll into the new property.
  6. 180 Days – Your new property must be closed within 180 days of the close of the relinquished property.

Aug 17

Ideas for Sellers that make a Difference.

New paint (keep it neutral or select from this year’s newest color palette)
Pressure wash exterior.
New carpet or install natural stone or wood flooring.
Replace “dated” light or plumbing fixtures. Change cabinet pulls / knobs.
Counter tops – today’s buyers rank granite or natural stone high on their list (if not replacing laminated surfaces, consider expense to replace when arriving at asking price.).
Open curtains, shades – make rooms light, airy and spacious.
Landscaping – doesn’t have to be elaborate. Trim trees, bushes, any dead growth, add fresh pine straw, large pots of colorful flowers do wonders for entryways.
Repair stains, cracks, caulking, and plumbing leaks – if left in disrepair, this gives a potential buyer an uneasy feeling of property’s condition and future problems with home.
Home Inspections – Have a home inspection done before putting your house on the market. Repairs made by you now are one less thing you may be required to complete if cited in a buyer’s independent home inspection report. If left until days before the closing date – scheduling and getting the subcontractors to complete the repairs can be quite stressful. Before closing, the repairs have to be reinspected and signed off  by the buyer –- or money may be escrowed until repair is completed. If buyers perceive they are going to have to spend money on repairs, the offering price may come in less than you anticipated.
“Collections” and Clutter! Say goodbye to the dusty silk arrangements, heavy drapes (you paid a fortune for in 1992), and tabletops full of framed family photos. Kitchen and bathroom counters, desks that means you too need to be cleaned off! Make your property clutter-free. This is where you must get thick-skinned, and have an unbiased person consult with you on what “has to go” at least to storage until your moving day. As seen on the popular cable network home shows – one person’s idea of the epitome of style and elegance is another person’s flashback to a decorating nightmare. Make your home as neutral and spacious as possible – buyers want to envision their furniture & belongings in the new space.
NO SMOKING – This tops the list as most offensive lingering odors. Most smokers can’t even tell their home has a smokey aire! Upholstery, carpet and even walls seem to absorb smoke – if you can’t quit – at least smoke outside until your home is sold. The home’s interior will probably need a coat of new paint and have the carpet and furniture professionally cleaned prior to putting the house on the market. Don’t try to cover it with perfumey candles or plug-ins – they can be almost as bad. If possible, refrain from cooking that favorite fried food, garlicy or curry dishes while your home is on the market.
Man’s Best Friend or pet with nine lives……the olfactory factor continues. Have your upholstery & carpet steam cleaned. Be sure to air out house if possible before your house is shown. Let agent know where your pets will be while your home is being shown.
Newer Entries »