Rudy Molinet, Broker/Owner
Marquis Properties Realty
508 Southard Street, Suite 107
Key West, FL 33040
Direct: 305-240-1090
Office: 305-295-6565
Fax: 305-768-0808
rudy@rudymolinet.com
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1031 Exchange Program
The United States tax code allows you the opportunity to defer the gain from an investment property into the future. This is commonly known as a 1031 Exchange. This is used widely by investors as a tax planning strategy.
I will outline this in easy to understand terms and will provide a link for you to review the details:
- You sell a current investment property (not your primary home)
- You "exchange" the property you are selling using a company that specializes in this service. They are called "qualified intermediaries". Your realtor will coordinate this for you with the Closing agent. There are many of these companies. Make sure the one you work with is bonded.
- When you close on your current property the money is held by the 1031 exchange company. You never touch the money (rule of thumb: if you touch the money it is taxed.)
- You identify a new property that you want to buy within 45 days from your closing date. Usually most people identify 3 possible properties
- You must close on this new property within 180 days from the closing of the old property
- You buy the new investment property using the money from the old property. This is now tax deferred.
There are important deadlines that you must meet in order to assure that the tax deferral is granted by the IRS. Please contact Rudy for further information.
Click Here For a Brochure About 1031 Exchanges
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Rudy Molinet