So what is it? A 1031 exchange is a tax shelter that is allowed by the Internal Revenue Service (IRS). That tax shelter is only allowed for individuals who plan to invest the profits from the sale of an investment property into the purchase of another. Can anyone buying and reselling investment properties benefit from the 1031 investment property exchange? No. To benefit from this tax shelter, you must reinvest the entire profits from the sale. The good news is that money does not have to be spent on one new property. You have the option to spread the funds over a few new investment properties; all that matters is that you reinvest the full amount. When this happens, a third party intermediary holds the funds from the sale of your investment property. These funds are held until a new “like” property is found. At that point in time, the sale will be completed with the funds released.

Is there a period in which all transactions need to be made? Yes. You have 45 days from the time you sell your investment property to find a new property or a number of them that you wish to invest in by purchasing. There is also a 6-month window from the time you close on the sale of your property to when you must close on your reinvested properties. There are no exceptions to these two time frame requirements. For that reason, you should begin to research properties for sale as soon as you make the decision to sell.

Are there are restrictions? Yes. The Internal Revenue Service (IRS) has had to put safeguards in place to prevent abuse of this tax shelter. For example, there is the 95% exception rule. This rule says that you must get 95% of the property that you have showed intent to buy. Basically, you cannot enter into a partnership with someone else and collect the tax benefits.

In terms of property type, the only restriction for the 1031 investment property exchange is that it cannot be for your main residence. Aside from that, any other property qualifies. This is what makes the 1031 exchange a great opportunity for beginners new to real estate investing.

If you would like more information on the 1031 investment property exchange, you can visit the website for the Internal Revenue Service (IRS). On that website, you will find up-to-date and detailed information on everything you need to know about this financial transaction

Analyzing the figures of the Miami real estate market before buying, homebuyers and property investors can easily determine whether it is time to buy one or not. Keep in mind that the numbers in the real estate market change from time to time, more so in the American market.

ASHEBORO — Todd Gosnell never expected to open a club in Asheboro. Not so long ago, Gosnell said, he was enjoying the high life in Myrtle Beach, living in a multi-million dollar home and watching as his real estate investments kept the money rolling in.

One of the most successful commercial real estate brokers in the Seattle area is getting out of the brokerage industry — and getting into the ownership side of the business.

One of the most successful commercial real estate brokers in the Seattle area is getting out of the brokerage industry — and getting into the ownership side of the business.