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re: Question About Rolling Proceeds From A Condo Sale Into Another Property
Posted on 7/13/24 at 8:07 am to auwaterfowler
Posted on 7/13/24 at 8:07 am to auwaterfowler
The 1031 people have mentioned is a great tool. I’ve used it many times. As previously mentioned you have to use a third party as you can never touch the money yourself. There are specific time frames from selling to buying and it is sort of short. The property in question has to have been a rental either since you owned it or at least five years if I remember correctly.
I use a company out of Miami called Starker. It’s sort of crazy that you pay a company a couple grand to basically just hold your money. The sale of the property proceeds go directly to your 1031 company and they then pay the bank for the property you are now buying. It’s a great way to avoid capital gains taxes.
I use a company out of Miami called Starker. It’s sort of crazy that you pay a company a couple grand to basically just hold your money. The sale of the property proceeds go directly to your 1031 company and they then pay the bank for the property you are now buying. It’s a great way to avoid capital gains taxes.
0
Posted on 7/13/24 at 8:11 am to Billy Blanks
quote:
To close it, have to identify a property much faster than that.
You have to identify the property in like 45 days. One time a property of mine sold much quicker than I expected. I had to jump on a plane and find two houses to buy in 48 hours because I didn’t have time to come back and do it again. I knew what market I wanted to buy into I just didn’t know what properties I wanted. Worked out in the end.
Posted on 7/13/24 at 11:53 am to auwaterfowler
To clarify, the current condo in Auburn is not a rental. It’s just a property we bought so we didn’t have to pay rent for the 8 years we had kids going to school there. Does that change any of the advice??
Posted on 7/13/24 at 11:30 pm to auwaterfowler
quote:
To clarify, the current condo in Auburn is not a rental. It’s just a property we bought so we didn’t have to pay rent for the 8 years we had kids going to school there. Does that change any of the advice??
So it’s basically a second home.
1031 not available. Principal residence exclusion not available. You will owe capital gains.
Or, you could turn it into a rental for at least two years…
Posted on 7/14/24 at 4:44 am to LSUFanHouston
quote:
Or, you could turn it into a rental for at least two years…
This is doable
Posted on 7/14/24 at 10:40 am to auwaterfowler
1031’s in many markets are not easy to do. I’m not going to tell you I’m an expert as I’m not, but again you have to close, choose a home, and close again in a limited time window. Really the way to do it best is to find a property before you sell or while you are selling, work a deal with your buyer, and then extend the buyers closing until you have a property picked out you can close on.
I’m not saying it’s not worth it, but you need to figure out any capital gains you’d pay first. If you are just talking about a little bit of taxes, it may be worth just paying them to give you more time to buy right. In other words buying and selling properly maybe worth more than the taxes saved.
I’ve seen 1031 deals rushed multiple
Times
I’m not saying it’s not worth it, but you need to figure out any capital gains you’d pay first. If you are just talking about a little bit of taxes, it may be worth just paying them to give you more time to buy right. In other words buying and selling properly maybe worth more than the taxes saved.
I’ve seen 1031 deals rushed multiple
Times
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