What are the steps you need to undertake to effectuate such a transaction? Is this any different than any other "like-kind" exchange? Or am I misinformed about the ability to do such an exchange? Any guidance or referrals to websites would be appreciated.
2006-08-07 17:58:13 · 4 answers · asked by doousle 1 in Business & Finance ➔ Investing
Check out the site I included in the resource box and see whether it would help you. It has info on commercial real estate that might be related to your question on 1031 exchange.
Good luck
2006-08-08 18:07:51 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Like-kind means that if you sold land you must reinvest in land, if you sold a house you must reinvest in a house. You have only 45 days to identify the property, and 6 months from that point to close on the property. Plus the property you identify can only total no more than 200% of the money you have in the exchange. This sadly means that you cannot identify all the property in the state of Nevada as your option to close on. First American exchange is a decent place to put the money while you are doing the 1031. They will also pay interest.
2006-08-07 18:14:53 · answer #2 · answered by 1 1 · 0⤊ 0⤋
Is it viable to create a corporation, roll the 401k into an IRA, and make investments your IRA in that corporation's inventory? That means you would not pay the penalty. I'm now not certain if an IRA demands to be invested in publically traded inventory however it is valued at watching into. Edit: If you cannot do the above, it is dependent what quantity of money is on your 401k, how so much you are going to want for retirement, your present age, and many others. Remember you are taking a ten% penalty off the bat for doing away with $$ out of your 401k, so you are going to want truly property returns of eleven% above what you might get out of your 401k with the intention to holiday even the primary 12 months. Then once more, if you'll hire out the extra homes and develop your coins go with the flow, they'll pay for themselves whilst you acquire the advantages of capital appreciation. With the housing marketplace the best way it's, you will have to be capable to make purchases at very well expenses. It's a difficult name and there may be now not ample understanding to provide you well recommendation.
2016-08-28 11:03:48 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Check irs.gov for rules on the exchange.
2006-08-07 18:26:16 · answer #4 · answered by kearneyconsulting 6 · 0⤊ 0⤋