Like Kind Exchange - Location, Part 3


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.

Like Kind Exchange - Location, Part 3

New technology is creating lots of rapid change in how business works today. However, in some ways, our world still looks like the same as it did decades ago.

For instance, if you bought a property 15 years ago in Washington state, that property is no doubt still at the same location. You, however, may be moving to another state for retirement or have a family member who's interested in managing a property. As long as there's straightforward ownership criteria and like kind eligibility, there shouldn't be any problem with a 1031 exchange for these strategies.

Question 1:
Hi, I own an investment property in Australia that I am looking to sell. I am a US Resident (Green Card) and want to buy another property in Australia with the sale proceeds and avoid CGT under 1031. Do you deal with foreign 1031 exchange transactions, specifically in Australia?

Answer:
Yes, a 1031 exchange has to be made from one foreign property to another foreign property, or from one domestic property to another domestic property. I don't handle foreign 1031s so ask around for qualified intermediaries near you.

Question 2:
I have a 1031 property in the UK..intend to sell and buy another 1031 in the UK and rent it out for two years and then swap our primary residence in U. S. Virgin Islands for the one in the UK….we are worried about the 45 day rule to identify the propertie(s) you want....what happens if the seller backs out?

Answer:
While you cannot exchange a primary residence outright, you can sell it under section 121. Each person on the deed can get a $250,000 exclusion from taxes. Suppose you change your primary residence to the United Kingdom: in this case you cannot swap or exchange a U.S. Virgin Islands residence for that property.

U.S. Virgin Islands tracks to the United States in terms of domestic 1031 exchanges.

Question 3:
I have a house in India which I want to sell. Can I get the benefit buying a primary home in U. S. Virgin Islands with the provision of 1031 exchange program and defer the capital gains on that.

Answer:
Again we need to respect the like kind requirement. You will need to exchange a country outside of the U.S. or its holdings with another property in a country foreign to the U.S.

About Marilee:
Role of Marilee Hill, Registered Representative (RR)

With extensive experience in real estate and specific knowledge of 1031 exchanges, Marilee Hill has helped many clients to understand the risks and the rewards that go along with this kind of deal.

She's been a property manager and a real estate broker, and Hill understands FINRA and assorted rules and regulations.

She enjoys helping clients to navigate a complex terrain when it comes to strategizing and setting up a 1031 exchange and looking for a qualified intermediary to help.

Ask Marilee Hill about your next 1031 exchange plan.

Like Kind Exchange – Location, Part 2



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.

Like Kind Exchange – Location

Our world keeps growing and expanding and getting more complex through the power of technology. Populations are more mobile now than they used to be, and we can move data and goods at speeds that you couldn’t imagine just a few decades ago.

On the other hand, a property that you bought a few years ago at 555 North Main St. in your hometown is still at the same address, in the same state. Real estate is, in that way, static. It’s going to be the same asset day to day and year to year, barring any major catastrophes or a spike in the housing

market.

Although your property will stay the same, your needs may change. You may be moving out of state, or want a family member to take care of your property. Our lives change. The good news is: there is no 1031 ambiguity in addressing this kind of scenario. The 1031 exchange has hard rules, and with the right guidance, you can set up the 1031 that works for you.

Question 1:
For investment property in NJ, want to sell and purchase another investment property in TX.

Answer:

This type of 1031 exchange deal is done every day of the week.

All U. S. property is like kind. All foreign property is like kind to other foreign property. SO if you want to sell in New Jersey and buy in Texas, you’re on solid ground. Now, if you wanted to sell in New Jersey and buy in Barcelona, Spain, that’s another story.

Question 2:
information on internal rev code 1031, like kind exchange. can investment property be like kind exchange from one state to another…

Answer:
Any property in the United States is like kind to any other location in the United States, U.S. Virgin Islands and Guam. It is not like kind to another country. As in the example above – if it’s not a U.S. property, it’s like kind to another “foreign” property outside of U.S. jurisdiction.

About Marilee: Role of Marilee Hill, Registered Representative (RR)

Turn to Marilee Hill, an experienced real estate professional, for help with 1031 deals and other real estate guidance. Hill entered into the securitized 1031 exchange field in 1999 and used her previous experience as a property manager to get a broader view of real estate markets in the U.S. and elsewhere.

Marilee always says “My clients' success is my success”. She wants clients to succeed, and she knows what this entails. It means getting everyone, including the IRS, on the same page. It means building a 1031 exchange on a firm foundation so testing it doesn’t lead it to wash away.

Please contact Marilee Hill for your next 1031 Exchange strategy.