Do you want to exchange your properties held for investment or business purposes? These properties that you want to exchange must be similar in the eyes of the IRS for the deferred capital gains taxes. If it can be used properly, there are no restrictions on how frequently or how many times you can do such exchanges. We, at Traditional Abstract, LLC, can be the right solution for you if you are thinking of investing in a 1031 exchange. We are an established and reliable company with more than 60 years in this field. We bring you a wide variety of so this is, right from title search, title insurance, and real estate transaction services, and so on. We are known for our wide range of services, high sense of efficiency, professionalism, and our utmost dedication towards all our clients. So, if you are based in areas like Bethlehem, PA, Allentown, Lehigh Valley, Easton, PA, or Nazareth, PA, then you can opt for us.
Here, we have put together a few questions you might have about the 1031 exchange. Take a look.
- Can we do the exchange if we are members of an LLC or cash it out during the sale of the property?
Under the IRS code, members of the LLC cannot do their own exchange; the entity only can do so. There is a process known as the drop and swap which allows certain members or partners to drop their interest from the entity and individually be a part of the exchange and not as a member or partner.
- Is it okay to get a tax deferral when the game is rolled over during an exchange?
The selling price of the relinquished property and the net of closing costs have to be reinvested in order to completely sheltered your gainful stop the net amount, basically, which goes into the exchange account has to be reinvested and there should be an equal or greater mortgage debt on this new property as opposed to what has been paid off when you closed the old property.
So, after getting these answers, if you are interested to know more or get a 1031 exchange yourself, contact us now.