Taxpayers considering selling their farm or ranch with a primary residence can utilize both Section 121 and Section 1031 to exclude and defer capital gain taxes. Section 121 applies to the primary home while Section 1031 applies to the land and out buildings. This is also known as a mixed use property where a portion of the property is a personal residence and the acreage is held in the productive use of a business or for investment.
Exchange Blog
1031 Deferred Improvement Exchange in Florida
“All in all, the process was very simple, payments to contractors was very quick and painless. I am pretty happy with being able to use the proceeds to make the improvements. I would recommend Atlas 1031 and the 1031 deferred improvement exchange.”
1031 Exchanges with Short Sales and Foreclosures
Taxpayers engaged in a 1031 exchange will often include short sale and foreclosure properties in their mix of potential replacement properties. A 1031 exchange allows the deferral of federal and state capital gains and recaptured depreciation taxes when a property of equal or greater value is acquired. The tax deferral is an indefinite postponement of the tax triggered or due when the replacement property is sold, unless another 1031 exchange is initiated.
Selling and Acquiring Aircraft Tax Consequences
When selling or acquiring aircraft or aircraft engines held for productive use in a business, it is critical to consider the tax consequences. If not, a five to six figure tax burden could arrive unexpectedly in the mail from state and federal tax authorities. Acquaint yourself with the tax consequences by researching the Internet inputting the long tail keywords “aircraft taxes” or “aircraft sales tax deferral” and seek the counsel of your CPA.
1031 Exchange Rules Virginia
Section 1031 of the Internal Revenue Code allows taxpayers to enter into an exchange of property instead of a traditional sale in order to defer the payment of capital gains taxes that would otherwise be due. Because of the various and complex rules that must be followed for a transaction to qualify as a Section 1031 Exchange, a Qualified Intermediary, or QI, is required to facilitate the transaction. In short, a QI facilitates the exchange through the use of an Exchange Agreement and Assignments of the relinquished and replacement property Purchase and Sale Agreements entered into by the QI and the taxpayer. Part of the QI’s role is to hold, and ultimately transfer between the parties, funds that are used in the transaction. Given the fiduciary role of a QI, individual states have enacted laws specifically aimed at Qualified Intermediaries in an attempt to prevent misappropriation of funds. In Virginia, § 55-525.1 et seq. addresses the duties and responsibilities of a QI, who is referred to as an Exchange Facilitator in Virginia.
Multi-Family 1031 Eligible Properties in Warrensburg, MO
1031 eligible multi-family properties are available in Warrensburg, Missouri, located 64 miles from Kansas City and 218 miles from St. Louis. Whiteman Air Force Base and University of Central Missouri are the leading employers.