Like-Kind Exchange Examples - Real Estate Tax Tips - 1031 Exchanges скачать в хорошем качестве

Like-Kind Exchange Examples - Real Estate Tax Tips - 1031 Exchanges

https://www.evanhcpa.com In this video I go over a 1031 exchange, also known as a like-kind exchange. It's a transaction, usually related to real estate, where the buyer and the seller swap properties in order to avoid paying capital gains taxes. You don't necessarily need to find someone to trade properties with. You can sell your property to a third party, if you keep the proceeds with a qualified intermediary. This is an important point. If the cash goes to you directly, the like-kind exchange is null and void. You need someone, usually an attorney, to hold the funds until you purchase a new property. You can then pull those funds out to help in the purchase of the new property. You can do a like-kind exchange with any investment property. For example, if you have a business and own the building it's located in and decide to sell it and move to a new building, you can do a like-kind exchange with the selling of the old building and purchase of the new one. You can also do a like-kind exchange if you rent property to somebody. One type of real estate you cannot use for a like-kind exchange is residential property where you yourself live. Neither can you do a 1031 exchange with a development a property, where you buy some land, build a house and sell it. You could potentially do a like-kind exchange with a development property if you rented it out for a satisfactory period of time and then decided to sell it. You could do that, but the 1031 exchange is really only intended for investment property. Most people do this as a way to defer all capital gains, but there are also opportunities for partial 1031 exchanges. You can do a partial like-kind exchange when you buy down, for example. If you purchase a house at a lower price than you sold your original house for, that automatically creates a capital gain that's recognized immediately. But you can potentially get a partial deferral. But we'll get into that later. To keep things simple, I leave the closing costs and depreciation out of the examples. The depreciation recapture--if you rent the property out you're recognizing the depreciation over the years--can also be deferred along with your capital gains and certain types of closing costs can be built into some basis as exchange costs. But I want to stick to just the basics here to give you a solid understanding of what you would need to do to move forward with a like-kind exchange. In the first case study, I give you a basic example of a full exchange, in which the full capital gain is deferred. I go over the normal 1031 exchange where you purchase a new property for the same price or more than the one you sold. In this case, the profit you realized from the sale of the first property is deferred. In the second example, I use essentially the same numbers as in the first, except that in this example, you decide to take out a mortgage on the new property. In this case, you can only do partial deferment. The third and final example is the buy down. In this case you do have to recognize the difference between higher sale price of the first property and lower purchase price of the new one. This amount is taxable and can not be deferred, so this is an example of a partial deferment. Like-kind exchanges are actually pretty complicated in the real world, but I just wanted to give you some basic information for now. I may show you some more complex transactions in the future because I know that anything tax related is never as basic as the examples you are shown. But this video will at least give you an idea of what you need to do and what you need to look out for with a like-kind exchange to defer the full capital gains tax, or as much as possible, when you are buying and selling real estate. Please share this video about Like-kind exchanges:    • Like-Kind Exchange Examples - Real Estate ...   Subscribe to my Channel: http://www.youtube.com/subscription_c... Follow Me:   / evanhutchesoncpa     / nashville_cpa   http://plus.google.com/+Evanhcpa/about   / evanhutchesoncpa