Investment Blog

Basics of a 1031 Exchange #1

By Kevin Schill

 In real estate the IRS allows us to defer our capital gains taxes by using what's called a 1031 exchange.  There are a number of hoops we have to jump through to complete the exchange, but the opportunity to defer these, sometimes large tax liabilities, is well worth the effort.

The 1031 exchange allows us to sell an investment property, and exchange it for a new investment property of "Like-Kind".  The new property is seen as a continuance of the original investment, so the gains are not taxable at the time of sale.

The first item to consider is consulting a qualified attorney or CPA.  You should always get professional advice when moving forward with these somewhat complicated tax exchanges.  It is also required that one seeks a "qualified intermediary" to handle the detail for any 1031 exchange.

More to come....

24 Unit Apartment Building in Longmont

I have a new listing in Longmont, this property has 24 units with a mix of 8 one and 16 two bedroom apartments.  Excellent location just one block off Main St.

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This property consists of 2 buildings on a 35,325 sf lot and is being listed at $1,475,000.  Low vacancy rate and a GRM of 8.29.


© Kevin Schill 2018