Don’t Let A 1031 Exchange Frighten You.
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It’s not scary if you let them work FOR you. What exactly is a 1031 exchange? In Boulder Colorado and other parts of Colorado, it is a lawful transaction in which an asset is sold and the proceeds of the real estate sale are reinvested in a similar asset. Because the transaction exists between two like assets, then no gain or loss is recognized, allowing the deferment of capital gains taxes that would otherwise have been due on the first sale. There are several important factors to consider when partaking in 1031 like-kind exchanges. This is a brief overview that a seller/exchanger needs to know in order to pursue this further. Don’t be scared, all you need is a little help to get you going in the right direction.
IRS taking a bite out of Real Estate exchanges
Ever feel like yo
u can’t win for losing? Beware, the IRS is closing loopholes on Capital Gains for 1031 real estate exchanges. Here we go again – the IRS is changing the status of what constitutes capital gains on investment property. As if we don’t already have enough to think about as a real estate investor. The reason I bring this up is because we are in a super “investor” real estate market right now. I live and work in Boulder Colorado where we have people moving here from all over the world, not only because of the beautiful scenery, but because it’s still a good place to invest and that appreciation of the homes are still above average. I recently picked up a buyer that was looking at one of my foreclosure listings and she was thinking about buying it as an investment and then moving into it themselves in the next few years. Read the rest of this entry »



