1031 Exchange in Florida
If you are considering a 1031 exchange in Florida, there are many companies you could turn to, but none have the experience and portfolio that Calkain offers its clients.
Under current IRS tax rules, when a person sells investment real estate, they have a tax obligation for the capital gains they have earned on the property. Although certain deductions can offset capital gains, an investor can still be left owing a good chunk of money to the government.
For example, if you spent funds remodeling and improving the property while you owned it, those expenses can be deducted from the profit you made when you sell it. However, those improvements most likely increased the value of the property which enabled you to sell it for more than what you paid for it. This all reflects in the capital gain you now owe.
But the IRS also lets you exchange that profit. Under a 1031 exchange Florida investors recommend, you can take funds from the sale of one property and use them to purchase another property and defer paying any capital gains tax on those funds. Instead of paying the money to the IRS, a 1031 exchange allows you to continue to use the money to make money for you.
There is no limit to how many times you can utilize the 1031 exchange rule. You can keep rolling over your money, deferring capital gains tax, and adding to your profits.
There are certain rules that are required in order to take advantage of the 1031 exchange. The first requirement is that within 45 days of the sale of your property, you must identify the replacement property you intend to purchase. This must be done in writing and given to an intermediary who will oversee the process. This is one of the many services Calkain offers its clients.
Once you identify the property you want to purchase, you only have 180 days from the day you passed papers on the sale of your property in order to finalize the deal. The 180 days countdown does not start on the day you identify this property, but on the day you sold your original property. For example, if you submitted your written intent 40 days after you sold your property, you have 140 days left to finalize the sale on the replacement property.
Also, if, after the sale of the replacement property, you still have funds left over from the sale of the original property, you may owe capital gains tax on the remaining balance.
Calkain: A 1031 Exchange Expert You Can Count On
To speak with a 1031 exchange Florida expert for more information, or to review available 1031 properties, call us today. Our company has been assisting real estate investors for almost two decades and as a result we have built a solid reputation as the Florida 1031 exchange company to choose.
If you would like to learn more about what investment opportunity options are available, contact Calkain today. We would be happy to show you our entire portfolio to assist you in finding the best investment property for your exchange.