The Capital Gains Blog

Posts Tagged ‘1031’

Question: Are there any tax advantages for the seller of a property, who is not exchanging, in a 1031 exchange?

Answer: No, nobody actually has a tax advantage in a 1031 exchange. The person who is exchanging one property for another similar property (to qualify for the 1031 exchange) is only postponing the taxes on the gain(s).

Highlight sheet scores through March 4

• Each week’s complete list of highlight sheet scores are currently appearing on the bottom of the Sunday Bowling Page. So, if you notice that your league’s highlight sheets are not appearing, please contact your league secretary. Thank you.

Question: Is there a waiting period to use sale of property to purchase new property?

We have one 4 plex under LLC, want to move it to another LLC where we have the option to purchase a 10 plex. Want to sell the 4 Plex put profits in 1031 exchange so we don’t pay taxes on profit. Then use that profit to purchase 10 plex. Our title company seems to think there is a waiting period once we move the 4 plex to the same llc our 10 plex option is under, before we can use profits from 4 plex to purchase outright the 10 plex, thanks for your assistance

Answer: I have never heard of a waiting period for 1031 transactions like that. Make sure you use a qualified 1031 holding company for the transaction though.

Panel endorses funding rules for initiatives

State lawmakers want to make sure that police, firefighters and other special interest groups can’t force city officials to spend more money on their programs at the expense of other priorities.

1950 Chevrolet 3100 STK # 1031 *SOLD*

Grubb & Ellis Healthcare REIT II Enters Agreement to Acquire Parkway Medical Center near Cleveland

Grubb & Ellis Healthcare REIT II, Inc. today announced that it has entered into an agreement to acquire Parkway Medical Center, a two-building medical office portfolio totaling approximately 88,000 square feet in the Cleveland suburb of Beachwood. Â The acquisition is subject to customary closing conditions and the satisfaction of other requirements as detailed in the agreement. Â

Question: Selling a property for $50,000. Should I pay down mortgage & 1031 exchange to save taxes, or invest in Mfunds?

My mortgage is $160,000 at 6.625 APR, for 25 more years. I shared my plan with friends, to invest the money. It started an interesting conversation. I have clear title to the lot selling. I plan to stay in my home a minium of two years, possibly longer.

Answer: This is a question for a tax attorney and a financial advisor. With a 1031 you are going to have to make a like kind exchange so you can not use the money tax free to pay down your existing mortgage, you would more then likely have to buy another piece of land or something similar to what you are buying.

I would take the money and invest it something that you are getting a return on because equity in your house does not have a rate of return, it grows at the same rate no matter how much you have in it. If you can find an investment where you are getting a rate of return better then 6.625% then you are going to be ahead. Also the mortgage interest is tax deductible so your effective rate after the tax deduction is somewhere around 4.625%.

You should look into a book called missed fortune by douglas andrew, it has some interesting concpets reguarding this issue.

Grubb & Ellis Healthcare REIT II Meets Ohio’s Minimum Offering

Grubb & Ellis Healthcare REIT II, Inc. today announced that it has received and accepted subscriptions aggregating 2,000,000 shares of its common stock, or $20 million, therefore satisfying the minimum offering amount required by the state of Ohio.

Question: Divorce and Inheritance?

I inherited a property during my marriage; I sold the property under a 1031 exchange. The new asset is listed as sole and separate property. The funds have never been co-mingled but we did receive a distribution which we reported on our income taxes. Is the primary asset safe from community property?

Answer: if its an inheritance u should get to keep it, unless u co mingled the monies. yes i think even if your in a community property state that an inheritance is protected.

CoStar’s Retail News Roundup: Jan. 31 – Feb. 6, 2010

This week in the Retail Roundup, CoStar reports on expansions or new concepts at Starbucks, Meijer and 77kids; closings, cutbacks, bankruptcy, default, receivership or foreclosure news at Home Depot, Movie Gallery and Hollywood Video; acquisition, merger…