Austin, Texas and surrounding communities continue to show appreciating investment property values for investors who defer capital gains taxes in a 1031 exchange. Steady job growth and path of progress are a couple of important criteria investors consider when searching for replacement 1031 exchange properties. Prior to selling these properties, the choice is whether to pay the capital gain tax and cash out or defer capital gains and recaptured depreciation taxes by replacing with one of many 1031 exchange properties.
The Certified Exchange Specialist on staff has been providing 1031 exchange qualified intermediary services for professional advisoes and their clients in Austin, Texas for a variety of real and personal property since 2003.
1031 Exchange Properties
1031 exchange properties are either real or personal property held for investment or for use in a business or trade. Real property or real estate can be exchanged for real property including oil and gas interests given the interest is unlimited and for at least thirty years. Personal property either tangible like a violin must be exchanged for another instrument of like kind and character. A patent must be exchanged for another intangible personal property of similar character.
The intent to hold the property as an investment or for use in a business or trade is supported by facts such as length of hold and minimal personal use. When an aircraft is sold, the capital gains and recaptured depreciation taken over the years can be deferred if an aircraft of equal or greater value is purchased within 180 calendar days of the old aircraft sale. All 1031 exchanges follow the same set of 1031 exchange requirements. In Austin, Texas 1031 exchanges are initiated on the following types of real and personal properties.
Each 1031 exchange is managed following 1031 security and transparency procedures, depositing 1031 exchange proceeds into non commingled, interest bearing accounts insured by FDIC. Multiple banks can be used to hold the proceeds. Either a personal identification number known only between the Exchangor and bank can be used or a qualified escrow account requiring dual signatures to authorize disbursement of 1031 exchange funds.
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