Because of the phenomenal housing spurt in Florida,
choosing a Florida mortgage lender can be a little
confusing. As your Clearwater Beach Real Estate Agent, I can help
you find the right type of financing for your next
real estate purchase. I work with several mortgage
companies and have successfully helped many of my
clients with the purchase of their home, both single
family homes or investment properties.
Let me help you with getting you a mortgage loan,
bad credit loans, mortgage refinancing, information
about the 1031 Tax Exchange procedures, or with current
mortgage rates. One of the Last Tax Shelters - A §1031 Tax
Deferred Exchange is one of the last tax shelters
allowed by the Internal Revenue Service. It is a
transaction in which a taxpayer exchanges investment
property for like-kind property and defers the payment
of capital gain taxes. The IRS defines like-kind
property as all real property held for the productive
use of trade or business or for investment purposes.
This basically means any real estate held for investment
except your primary residence and second family home.
There are some important rules which must
be followed to effectuate a valid exchange:
- The exchange must be opened before the
close of escrow on the relinquished (sale) property.
- The taxpayer must identify the replacement
(acquired) property within 45 days after the close
of the relinquished (sale) property.
- The taxpayer must close the replacement
property within 180 days from the close of the
relinquished property or the tax return filing
of the relinquished property, whichever comes first.
- The taxpayer must reinvest all net proceeds
into the replacement property. The taxpayer must
obtain a debt of equal or greater amount on the
replacement property.
- By following these rules, the taxpayer may
shelter the capital gain taxes into the replacement
property. This creates more buying power for the
taxpayer than if the capital gain taxes were paid.
Also, by deferring the payment of capital gain
taxes, the taxpayer gets to invest the taxes interest
free from the IRS.
Please
contact me at joannelloyd@joannelloyd.com for
more information. |
