Read What People Are Saying About Us
 

One of the most popular "tax deferring" strategies for real estate owners who are selling one property and acquiring another is the use of Section 1031 of the Internal Revenue Code. It is an effective way to defer paying income tax on capital gain generated by the sale of a property when you intend to reinvest the proceeds in a similar, "like-kind" property. Almost any kind of real property is considered "like-kind" with any other real property.

A recently enacted law closes what was considered a loophole in the Section 1031 rules. In some cases, owners of investment real estate have used the 1031 Exchange to swap their investment property for real estate that could be readily converted to an owner-occupied residential property. After the exchange, they made the property into their principal residence, lived in it for a couple of years, then sold it. Now the American Job Creation Act of 2004 has ruled that properties converted from a 1031 exchange property into a residence must be held and used as a principal residence for at least five years to qualify for the tax exemption. Otherwise, the basic tax-deferring benefits of 1031 exchanges remain the same.

Consult your tax advisor for more detailed information.

	See All Tips In The "Tax Considerations" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

Angel Anderson, Realtor
Hatboro Real Estate Services, Inc.
253 S. York Road
Hatboro, PA. 19040
Phone: (215) 674-1200
Fax: (215) 674-1456
Email: AngelandFran@NUMBER1EXPERT.com
Email: angel@hatborores.com

The partners of Hatboro Real Estate Services, Inc. opened their office with a specific goal in mind… to bring “hometown” customer service back to real estate. Angel Anderson and Associates are committed to making their clients’ experience with the real estate process both easy and enjoyable. After 20 years combined in the real estate industry, they are able to bring their clients superior knowledge and expertise. Angel Anderson and Associates promise to always act with integrity and to earn your trust. The company’s slogan is “compassion over commission”. We are Realtors, members of the Montgomery County Association of Realtors.

www.HatboroAreaHomes.com is brought to you by Angel Anderson, Realtor, real estate for
Hatboro, Warminster and Willow Grove, Pennsylvania

Read Angel Anderson, Realtor's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge