Ric Moody's (ricmoody) Blog

By
Commercial Real Estate Agent - Dayton Commercial Realty
RECENT BLOG POSTS
HOW SHOULD MY CLIENT SELECT A QI? The Intermediary should be carefully chosen to ensure the exchange is defensible.  As a principal in the transaction, the Intermediary will have as much responsibility as the Exchangor for performance of contractual obligations in the selling and buying of proper...
12/21/2008
WHEN AND HOW SHOULD MY CLIENT BEGIN THE EXCHANGE PROCESS? Your client must first select a Qualified Intermediary ("QI") to facilitate the exchange. A QI is a professional company that specializes in processing §1031 exchanges. The QI's services must be retained prior to the closing of the exisiti...
12/21/2008
WHAT'S THE BENEFIT IF MY CLIENT WILL EVENTUALLY HAVE TO PAY THE TAXES ANYWAY? With proper estate planning, your client may never pay capital gains tax! There are many tax-planning vehicles that allow taxpayers to relinquish their low basis assets (such as real estate) without paying taxes. Gifts ...
12/21/2008
WHAT IS CAPITAL GAINS TAX? - Currently the rate is 15% Capital gains is the difference between what a property sells for and the "adjusted basis" in the property. When investment property is purchased, the purchase price becomes the initial cost basis. If your client makes capital improvements to...
12/21/2008
WHAT IS A QUALIFIED INTERMEDIARY? A "Qualified Intermediary" is a person other than the Exchangor or a person related to the Exchangor who, for a fee, acts to facilitate the exchange by (i) acquiring the relinquished property from the Exchangor and (ii) acquiring the replacement property and subs...
12/21/2008
WHAT DOES LIKE-KIND MEAN? IRC §1031(a)(1) allows for the exchange of property held for productive use in a trade or business or for investment for like-kind Replacement Property. A myriad of court cases and IRS rulings have established the definition of "like-kind" real estate to be very broad. E...
12/20/2008
WHAT IS THE DIFFERENCE BETWEEN A SALE AND AN EXCHANGE? A sale is an exchange of property for cash or other property which is not "like-kind" to real estate and therefore taxable. The IRS states that an exchange is a non-taxable sale because you, the taxpayer will sell investment property and repl...
12/20/2008
WHAT IS A TAX DEFERRED EXCHANGE? Internal Revenue Code Section 1031 allows you the opportunity to defer capital gains taxes owed upon the sale of investment or income property by exchanging the property for other like-kind property. The IRS states specific guidelines that must be followed and a Q...
12/20/2008
6 Rules You Need To Know About 1031 Exchanges 1) Real Property Use - Both your Old and New properties must qualify as investment or business use. (Nearly all types of Real Estate qualify) 2) 45 Day Identification Period - You have 45 days from the closing of your sale to list the properties you ...
12/18/2008
Rainer
7,286

Ric Moody

smartphone(937) 287-0072
Contact The Author