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Essential Knowledge for Tax Deferred Exchange Jason Pastucha, REALTOR 2008
Tax Deferred Gains in Exchange ,[object Object],BASIS Purchase Price Sales Price CAPITAL GAIN (15% TAX) RECAPTURE  (25% TAX) DEPRECIATION ADJUSTED BASIS TIME GAIN
IRC Section 1031 ,[object Object]
Exchange Requirements ,[object Object],[object Object],[object Object],[object Object],[object Object]
Exchange Parties ,[object Object],Qualified Intermediary Exchanger Buyer Seller Sale Proceeds Purchase Funds Contract Rights Title In Title Out
Qualified Intermediary Safe Harbor ,[object Object],[object Object],[object Object],[object Object]
Exchange Time Requirements 45 Day Identification Period   180 Day Exchange Period The 45 day identification and the 180 day acquisition timelines both begin on the closing of the sale of relinquished property  Non-simultaneous=Relinquish and Replacement
“BUY to HOLD” = Exchange ,[object Object],[object Object],[object Object],[object Object],[object Object]
Tax Deferred in 1031 Exchange BASIS $30,000 $50,000 Purchase Price $150,000 Sales Price CAPITAL GAIN (15% TAX) RECAPTURE  (25% TAX) DEPRECIATION ADJUSTED BASIS $100,000 $70,000 $80,000 Gains are Tax Deferred, $30k Recapture + $50K CapGains *Deferring payment of $15,000 in taxes Time
Deferment of Taxable Gain ,[object Object],[object Object]

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tax deferred exchange 1031

  • 1. Essential Knowledge for Tax Deferred Exchange Jason Pastucha, REALTOR 2008
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7. Exchange Time Requirements 45 Day Identification Period 180 Day Exchange Period The 45 day identification and the 180 day acquisition timelines both begin on the closing of the sale of relinquished property Non-simultaneous=Relinquish and Replacement
  • 8.
  • 9. Tax Deferred in 1031 Exchange BASIS $30,000 $50,000 Purchase Price $150,000 Sales Price CAPITAL GAIN (15% TAX) RECAPTURE (25% TAX) DEPRECIATION ADJUSTED BASIS $100,000 $70,000 $80,000 Gains are Tax Deferred, $30k Recapture + $50K CapGains *Deferring payment of $15,000 in taxes Time
  • 10.