1031 Exchange in Allentown
You’re ready to sell off the home that you bought to rent out in Allentown, but have you thought about the tax implications when you sell that investment property off? You may want to exercise a 1031 exchange, and the team at Traditional Abstract, LLC, can help guide you through the ins and outs of doing a 1031 exchange on your property. And while your situation will be unique with details, there are some important things to know about performing a 1031 exchange which you will want to keep in mind when you are looking to execute on this provision in the law.
What Is a 1031 Exchange?
You have likely heard about the 1031 exchange when it comes to investment property. Essentially, this section of the IRS code allows for the reinvestment of money from the sale of an investment property into another investment property, but only if it follows certain rules. For example, you might decide to sell a rental home and turn that money around to buy a duplex. As long as you do so within the timeline outlined in Section 1031 of the IRS code, you will defer federal taxes from the sale of the rental home because you simply moved those funds to a different investment property. It is important to note that this does not apply to the buying and selling of your personal property where you live.
1031 Exchanges in Allentown, PA
It is important to realize that there is a timeline with a 1031 exchange for reinvesting that money you got for selling your Allentown rental home. When you work with Traditional Abstract, LLC, they can help make this process quick and easy, but the more homework you do before you sell your investment property the better off you will be. Once you sell your property, you have a maximum of 45 days in which to identify up to three different investment properties that you would purchase. You also then have a maximum of 180 days in which to purchase that new property. If you don’t close and take possession of the new investment property in 180 days, you will then owe federal taxes on the sale of your investment property. Don’t leave this important process to chance, especially if you have never done it. Work with the professionals at Traditional Abstract, LLC, to get the process done right. Contact them today!
The town was officially renamed “Allentown” on April 16, 1838, after years of popular usage. Allentown was formally incorporated as a city on March 12, 1867. In the late 1870s, Allentown’s iron industry collapsed. It left the city economically depressed and to prevent this from happening again, efforts were made to develop a diversified industrial base. Allentown was one of only six communities in the country to have been named a “national success story” in April 2016 by the Urban Land Institute for its downtown redevelopment and transformation that has generated nearly $1 billion in new development projects as of April 2019.