1031 exchange boot
is a taxable benefit received by the taxpayer in a 1031 exchange. Also known as like-kind exchanges, the capital gains deferral strategy is used by taxpayers of all means–resident and non-resident–who own property held for productive use in a trade, business or for investment and replace with like-kind property within 180 calendar days of the initial sale.
Exchange Blog
Restaurant and Real Estate in West Palm Beach – 1031 Eligible
Free standing 1031 exchange eligible property with 3,000 square foot building on busy east west Okeechobee corridor that seats 150 with full liquor (4COP-SRX), ample parking and additional 500 square foot of available bonus storage space in suburban West Palm Beach, Florida. Restaurant has been operating for over 25 years. For last two years operating as Francesca’s Pizza and Restaurant.
FIRPTA Certificate
The Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) changed the landscape of the way non-resident individuals or corporations in the United States conduct the sales of real property located in the United States. FIRPTA stipulates that any United States real property sold by a non-resident is subject to a 10 percent withholding by the IRS to be used towards the payment of the capital gains tax. This is for the most part a hard-and-fast rule, but the seller can file for a FIRPTA certificate to either reduce or negate altogether the 10 percent withholding upon the sale.
FIRPTA and 1031 Exchange
As a result of the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), the United States can tax foreign businesses and individuals on the disposal of real property (real estate) located in the United States. The reason for FIRPTA is to ensure the collection of capital gains taxes that it would previously not be able to pursue if the seller was a foreign individual or entity.
Gold Bullion 1031 Exchange
When he was asked in a post exchange follow up, “What particular issue did you find difficult and should have been covered with a thorough explanation,” he replied “There were no issues, the process was quick, seamless and efficient.” “There were no problems.”
Understanding a 1031 Exchange
Real and personal property held in a trade, business or for investment when sold and replaced with like kind property is provided an exception in Federal Treasury Regulations Section 1.1031. Commonly referred to as a 1031 Exchange, these transactions defer or put off the tax charge associated with gain as the seller essentially trades one property for another that is similar in nature and character. Eventually, the property will be subject to tax when the taxpayer ends up selling the property completely, even if it is sold at a loss given it was depreciated. Consequently, the tax is deferred, postponed, delayed until the property sold is not replaced.