Julia Vakulenko

Featured properties: See ALL

Tampa4U.com

Newest listings

MLS# A4164920

All appliances including washer and dryer are included. 00 per month (everything's included). Match this with the current interest rates available, makes this home an exceptional value. Showings on or after Saturday October 1st.
Visit this property in LAKEWOOD RANCH: 8932 MANOR LOOP #105, LAKEWOOD RANCH

MLS# T2842452

The well-appointed kitchen has a corner pantry and comes with all appliances including refrigerator, built-in dishwasher, electric range, and microwave hood. The Owner’s Suite, located at the back of the house for privacy, has an en suite bathroom...
Visit this property in PALMETTO: 4019 WILLOW WALK DR, PALMETTO

MLS# T2840902

This beautiful 4Br/3Ba home in Bahia Lakes has been well maintained by the original owner. All bathrooms were upgraded in 2014 and the exterior was painted earlier this year. You'll enjoy access to the Bahia Lakes community pool and walking trail...
Visit this property in RUSKIN: 606 MARION HILL LN, RUSKIN

MLS# A4165262

Perfect opportunity to own your own piece of paradise or a great inventment ideally sited on the Gulf of Mexico on Longboat Key. With spectacular direct gulf views with a private beach just steps from your back door this beautiful turn-key studio...
Visit this property in LONGBOAT KEY: 3465 GULF OF MEXICO DR #102, LONGBOAT KEY


Tampa4U.com


Tampa Investment Info
Commercial Real Estate
Commercial Search
Income Producing Search
   

Save money with a 1031

How would you like to save thousands and not pay Capital Gain Taxes on the sale of Real Estate? If you answered "YES", then read on and contact us when you're ready.

What is a "1031 Exchange" aka "Like Kind Property Exchange"?

Sometimes referred to as a "Starker Trust", a 1031 Exchange is a transaction in which an owner of property held for investment is allowed to sell one or more properties and purchases one or more properties without a tax consequence. It is the best strategy for the deferral of capital gains tax that would ordinarily arise from the sale of Real Estate. Real Estate owners can accomplish almost any investment objective with 1031 Exchanges including greater leverage, diversification, improved cash flow, geographic relocation, and/or property consolidation.

How does an Exchange work?

An Exchange is usually a 3 way Exchange in which an intermediary is used to facilitate the transaction. Four things ordinarily occur in an exchange:

  • The seller sells the relinquished property. At closing the sale proceeds go to a Qualified Intermediary where the funds are held in a trust account "For Benefit Of" the exchanger.
  • The seller identifies replacement properties within 45 days of the closing of the relinquished property.
  • The seller (now the buyer) closes on the replacement property(ies) within 180 days of closing on the relinquished property and the funds are wired from the "FBO trust account" by the intermediary to the closing agent.

Why would I want to be involved in an Exchange?

Do you own "management intensive" Real Estate? Or perhaps you own property you purchased or inherited years ago and would prefer another property. You have probably realized good returns on investment that will otherwise be lost to the IRS. The sale of every property is a potential tax event with the tax consequence being realized after the closing of the property. Section 1031 was written into the Internal Revenue Code in the 1920's. The IRS realizes that your investment in Real Estate spurs the economy onward, however upon the sale of the property, any profit realized from appreciation must be reported, and is taxed at 20%. The depreciation you have been enjoying will be taxed at 25%. If you own passive investment property (raw land for example) you may have enough profit to invest to generate a cash flow by purchasing an income producing property.

What qualifies as "Like Kind" Property?

You can exchange any Real Estate investment for any other type of Real Estate investment - for example, vacant land can be exchanged for a warehouse, an office building for an apartment complex, or a vacation home, an orange grove, a golf course, horse ranch, whatever. As long as the property being sold is not a primary residence, and there is a tax liability to selling, an Exchange should be considered.


DO'S AND DON'TS of 1031 Tax Deferred Exchanges

Do plan in advance for the exchange. The Qualified Intermediary cannot have a fiduciary relationship with the exchanger; therefore the QI cannot give legal or tax advice. The QI does consult with the exchanger, as well as the exchanger's CPA, accountant, attorney, broker, financial planner, and lender.

Do attempt to sell before you purchase. Occasionally exchangers find the ideal replacement property before the relinquished property is sold. In this situation a "Reverse Exchange" may be necessary. We are happy to discuss Reverse, Build To Suit, and Improvement Exchanges.

Do remember these basic rules. To qualify for a complete tax deferral use all proceeds from the relinquished property to purchase the replacement property. Make sure the debt on the replacement property is equal to or greater than the debt on the relinquished property. An exception occurs when a reduction in equity cannot be offset by increasing debt. And finally, receive on Like Kind" property. Real Estate cannot be exchanged for jewelry, stocks, mutual funds, etc.

Don't plan to sell and invest the funds in property you already own. Funds applied toward property already owned are considered "Goods and Services", not "Like Kind" properties.

Don't change the manner of holding title during the exchange, or dissolve partnerships. A change in the exchanger's legal relationship to the property will jeopardize the Exchange. Maintaining "Continuity of Title" is critical to the Exchange.

Don't miss the identification period (45 days) or the closing date (180 days). A reputable Qualified Intermediary will not act on back dated information or late identifications, and the IRS is unforgiving on such matters.

Do contact Real Estate Exchange Services regarding trusts, corporations, partnerships, option money, seller financing, personal property included in the sale, farm and ranch property, multiple units with one side owner occupied.

Remember! Exchanges must be reported in the tax year that the relinquished property was closed, regardless of the tax year the acquisition property was closed.

 


Tampa Real Estate | Tampa Luxury Homes | Tampa Home Search | Tampa Condos | Tampa MLS Search | Tampa MLS Listings | Tampa Investment Properties | Tampa Commercial Real Estate | South Tampa Real Estate | Tampa Area Homes | Tampa Blogs | Apollo Beach | Brandon | Valrico | Wesley Chapel | Tampa Homes | Mira Bay | Fish Hawk Ranch | Westchase | Riverview | Carrollwood | Seven Oaks | Tampa Realtor |