Panama City Florida Real Estate and 1031 Tax Exchanges
The 1031 Exchange
1031 exchanges are a significant part of every investors strategy.
With over 10 years experience in Real Estate, Title and Escrow procedures, I am not only well versed and knowledgeable in 1031 exchange procedures, but I also have significant personal experience as I've utilized 1031 exchanges for my investment properties.
Who better to help you with your 1031 exchange, then an agent who is also a real estate investor.
When you are looking for a Panama City Florida Real Estate agent with experience and knowledge in 1031 Exchange services, I am here to assist you with all your investment needs.
What is a 1031 Exchange?
Section 1031 of the U.S. Internal Revenue Code allows investors to defer capital gains taxes on the exchange of like-kind properties. 1031, or tax-deferred, exchanges hold great advantages for both investors and Real Estate owners.
1031 tax deferred property exchanges are exchanges in which capital gains tax deferral is available to real estate owners who sell their investment, rental, business or vacation real estate, and reinvest the net proceeds in other real estate. Real Estate held for these purposes are called like-kind/1031 properties.
Exchange Types
- Delayed Exchange - is the most common type of 1031 exchange. Following the closing on the sale of a property the seller has 45 days in which to identify the replacement property and/or properties. Once the property/properties have been identified, the purchased properties (replacement property) must be closed within 180 days.
- Reverse Exchange - Is the opposite of a Delayed Exchange and occurs when the seller of a property for which a 1031 exchange is to occur, identifies and purchases the replacement property/properties prior to the sale of property being relinquished.
- Improvemnet Exchange - This exchange allows a seller to construct/build a replacement property within certain guidelines provided by the U.S. Internal Revenue Code.
The Qualified Intermediary
To properly complete a 1031 exchange and defer the capital gains tax, the proceeds from the sale of a property must be escrowed by a “Qualified Intermediary” until the funds are used for the purchase of the replacement property.
How we can help
At Panama City Real Estate, we consult with you regarding your investment preferences including property types, location of property, debt ratio vs. equity etc.
We will work with your advisors and the Qualified Intermediary of your choice to remain within compliance of Section 1031 of the U.S. Internal Revenue Code.
To maintain your Florida real estate investment objectives and 1031 exchange needs, we will provide access to local Panama City real estate properties available for purchase from which to choose for the exchange. The properties identified for purchase will be approved through a due diligence process in congress with you.
For more infomation on Panama City Florida Real Estate and 1031 Tax Exchanges, please contact me or call me directly (850) 774-6582
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Jennifer Mackay REALTOR®
Keller Williams Success Realty
309 Richard Jackson Blvd., Suite 200
Panama City Beach, Florida 32407
Direct: (850) 774-6582
Fax: (850) 522-3967
Keller Williams Success Realty
309 Richard Jackson Blvd., Suite 200
Panama City Beach, Florida 32407
Direct: (850) 774-6582
Fax: (850) 522-3967
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