Panama City Beach Real Estate – 1031 Exchanges

Posted on October 25, 2008
Filed Under Florida 1031 Exchange, Florida real estate - Investor Insights, Florida real estate - Investor Tips | 2 Comments

Panama City Beach Real Estate As we look toward the holiday seasons and toward the end of yet another year, I’d like to remind my customers and visitors that 1031 season is just around the corner.

Interest rates and prices for properties are at the lowest they’ve been in years. The current Panama City and Panama City Beach Real Estate markets have good commercial, residential and condo opportunities for those in the market for investments or in need of 1031 exchange opportunties.

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 qualified real estate. Real Estate held for these purposes are called like-kind/1031 properties.

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.

Here are several important factors and considerations for 1031 exchanges:

There are two import 1031 Exchange periods that must be adhered to:
1. Identification period – This is the period during which the party selling a property must identify other replacement properties that the seller proposes to buy. This period is scheduled as exactly 45 days from the day of selling the relinquished property.
2. The Exchange Period: This is the period within which the party who has sold the property must receive the replacement property. This period ends at exactly 180 days after the date on which the party transfers the property relinquished or the due date for the person’s tax return for that taxable year in which the transfer of the relinquished property has occurred, whichever situation is earlier.
Only qualified properties may be considered in a 1031 exchange
The 1031 Exchange may include more than one qualified property.
The total purchase price of the replacement “like kind” qualified property must be equal to, or greater than the total net sales price of the relinquished property.
All the equity received from the sale, of the relinquished real estate property, must be used to acquire the replacement, “like kind” qualified property.

When you need more information on Panama City Beach Florida Real Estate and 1031 Tax Exchanges, contact me or call me directly (850) 774-6582.

Put my experience to work for you!

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Author : Jennifer Mackay - Posts:231

Jennifer Mackay is an award winning real estate agent and Keller Williams team leader in the Panama City Florida area. Her website: Panama City Real Estate provides guidance, information and free buying and purchasing features for registered visitors. Follow: @realtorjennifer | Facebook

Comments

2 Responses to “Panama City Beach Real Estate – 1031 Exchanges”

David Berger on November 5th, 2008 5:19 pm

Great Post.

One disturbing trend that people should also be aware of in 1031 exchanges is abuse and mismanagement of money by exchange companies. I encourage everyone to thoroughly vet any potential qualified intermediary.

Consider working with a 1031 exchange company that deposits your money only in money-market accounts that invest in government backed securities. With uncertain market conditions, it’s the only way to ensure your money will be there when you need it. I only know of one such company, RockSolid 1031. You can check out their website at http://www.RockSolid1031.com.
Jennifer Mackay on November 5th, 2008 5:38 pm

Thank you David for the comment.

That’s very good advice.

Do you work for this company?