Coconut Creek Real Estate: The 1031 Exchange Simplified

A 1031 Exchange can help make investing in Coconut Creek real estate a wiser idea. A 1031 exchange is the process of buying and selling investment real estate, enabling a deferment of taxes at the same time. A 1031 exchange involves the selling of a qualified property and the buying of a qualified property yet the transactions are seen as an exchange instead of a traditional sale and purchase.

What makes the 1031 exchange different, and often complicated, is that in order for properties to qualify they both need to be “Like Kind”. They need to be business or investment properties and the new property must be equal or greater than the property being exchanged in terms of debt.

The process of selling and buying Coconut Creek property during a 1031 exchange has requirements. When a property is being sold the owner has a 45 day period to identify a new property. The 45 day period cannot be extended and often more than one property is identified.

The next time period is the “Exchange” time period. After the closing of the selling property the exchanger has 180 days to close on the new property. Again, according to IRS rules, the time period is firm and cannot be extended.

The 1031 exchange can provide a great way for real estate investors to sell property and buy new property in Coconut Creek Florida without having to immediately pay taxes on their capital gains. For more information on the rules of a 1031 exchange click here.

For the best in Coconut Creek real estate experience and knowledge contact Silva Stoyanova at 954-673-4402. Silva has access to the Coconut Creek MLS and all available listings in the area.