If you are a tenured investor who has built a portfolio of diverse properties, a 1031 exchange is an exceptional tool to assist in continuing to add to, diversify or consolidate your holdings. A common misconception exists around 1031 exchanges that a single investment property must be exchanged for a single like kind investment property. This is incorrect. In fact, the ability to trade a single investment property for multiple properties, or in reverse; multiple properties for a single property gives the savvy investor the flexibility to adjust their portfolio according to their needs.Read More
Long thought of as the retirement capital of the United States, Florida is reinventing itself as the new national destination for real estate investment. According to a February 2018 Forbes article, “Best Buy Cities: Where to Invest in Housing in 2018” by Samantha Sharf, Orlando is ranked first in the country for value in real estate investment. Sharf and the team at Forbes highlight Orlando’s 7.1% job growth over the last two years as well as the 7.6% population growth over the past three years as strong factors in addition to their Local Market Monitor’s speculation that the prices of homes in Orlando could increase another 35% by 2021. With Orlando’s average home value still sitting roughly 22% below the national average, the opportunity for first-time and long-time investors to build or expand their portfolio has never been better.Read More
A 1031 exchange allows a federal taxpayer, either domestic or foreign, to defer capital gains and recaptured depreciation taxes when selling property held for productive use in a trade, business or investment, given like-kind replacement property is acquired within 180 calendar days from the sale of the old property. The types of property that can be exchanged include real, tangible and intangible personal property. Current market trends depend upon the type of Qualified Intermediary -- institutional or non-institutional -- and whether the exchange is oriented toward mass like-kind exchange programs or niche market such as artwork, livestock or vintage cars.
What are 1031 exchange properties? The narrow interpretation is property acquired in an Internal Revenue Code (IRC) Section 1031 exchange. The broader perspective is that any real or personal property held for productive use in a business, trade or for investment eligible to receive the tax deferral benefits when sold and replaced with like-kind property held for productive use in a business, trade or for investment.