Exiting the 1031 Exchange Chain, Part 2


1031Ex.com, April 2019 – 1 The questions here were received from interested 1031 exchangers visiting my website. I have chosen to leave the questions intact with their ambiguity, shorthand writing and misspellings so as not to act on the assumption as to what when unclear the questioner meant.

Exiting the 1031 Exchange Chain, Part 2

There's a strategy I called the retirement exit, and it makes sense for someone who's patient and likes to plan for the long-term. It requires some self-discipline, but if you like deferred gratification and benefiting from long-term financial strategy, it might be right for you.

This strategy involves creating a long-term plan to leave your property for financial gain. Maybe you've been there a long time and started to notice things that you don't really like about where you live – climate, economics or anything else. Want to set sail for sunnier vistas?

With this 1031 exchange strategy, you can move money in real estate transactions without the traditional tax burden associated with selling. Here's how it works – first, you acquire an investment property in addition to your permanent residence. After two years renting out the property, you can move into the investment property and claim it as your new primary residence.

This leads to substantial exclusion gains for property owners.

If done correctly, it's absolutely legal and is a great way to protect your financial resources.

Question 1:
We bought a rental from the money selling a vineyard using 1031. Is there a certain\n\namount of time before we can sell the house and not have to invest? We are in our 80\nand could use the money in the future.

Answer:
A sale requires an exchange to lighten the tax burden – that's the basic bottom line. So if you want to do another swap, you can, if you wait, but if you don't, you have to pay all the taxes.

About Marilee:

Role of Marilee Hill, Registered Representative (RR) Where do you turn for dedicated 1031 exchange advice? Marilee Hill has the experience and knowledge to help. Marilee Hill has practiced real estate in in multiple states and managed properties extensively – for instance, setting up a $12 million apartment property in 1991.

Since then, Marilee Hill has been helping clients to lay the groundwork for 1031 exchanges in a straightforward way. She knows the rules of the road and the rules of the game, but also understands that real estate is a people process, and that a good agent or professional benefits from a friendly and sophisticated approach. Ask Marilee Hill about real estate strategies for 1031 exchanges that will help you stay within the bounds of the law and accomplish your goals the right way.