1031x
Every real estate pro’s favorite topic: 1031 Exchanges. Also known as Like-Kind Exchanges.
Structuring the sale of your Real Estate (or any business/investment asset) as a 1031X can defer your tax bill almost perpetually!
In Brief: a 1031 exchange allows you to purchase a new property, while keeping the same basis as your old property…thereby ensuring you will pay gain when you eventually sell the new property. Since you will have a lower basis on the new property – your gain will therefore be higher.
Read the following articles to familiarize yourself with the rules.
http://www.irs.gov/uac/Like-Kind-Exchanges-Under-IRC-Code-Section-1031
Tax & Accounting for Real Estate 
02/25/2010 at 12:36 AM |
As a Canadian – assuming i start my own LLC or S corp in California – would the 1031 exchange be applicable to myself as well?
02/25/2010 at 10:52 PM |
Yes – you can…be careful though – if any Boot is received there might be a tax withholding required…but as long as you follow all 1031X rule this is allowed.