Queens Investors: 3 Things You Didn’t Know About The 1031 Exchange.
The 1031 Exchange is a highly useful tool for investors. In my experience as an agent helping my clients defer their capital gains taxes can be tricky and sometimes stressful. Before doing a 1031 please speak to your real estate lawyer, broker, or accountant.
The 50/50 1031 Exchange:
Do you own a multi-family dwelling if so you might be able to do a 1031 exchange on a portion of your property as long as you have proof that the other section of your home was used for investment only.
You Have to Rent the Property Out for a Minimum of 1-2 years:
So, many of my clients seem to overlook this one. Remember, a 1031 exchange is only used for investment properties. If you currently live in the dwelling as you primary residence. Your home is no longer a candied for a 1031 (Unless it is a multi-family).
When You Pass Away…
If you were to pass away all the properties can be passed on to your kids or kin tax free. Yes, it is possible and this is where an amazing real estate lawyer comes into play.
There is a lot that goes into a 1031 exchange and it should not be handled lightly. Many people who try to handle everything themselves find themselves in a hole of capital gains. I highly recommend reaching out if you want more details in regards to this wonder tool.
Disclaimer: I am not a lawyer and I am not giving you legal advice.