SOLD: 12 S Pontiac Dr

Kurt Egan represented the seller in the sale of this 2,368 SF building for $140,000!

1031 Exchange Basics (Part 2 of 2)

Sheltering taxes can be tricky but also beneficial. Finding a CPA with experience in commercial real estate is important to effectively protect yourself. A 1031 exchange is a tool often used to defer taxes and in my first blog post “1031 Exchange Basics”, I talked about the different types of 1031 exchanges. This blog will focus on the general rules of the Internal Revenue Service’s code Section 1031 that taxpayers must meet when identifying a replacement property. 

Three (3) Property Rule – The taxpayer may identify up to three potential replacement properties, without regard to their value.

200% Rule – Any number of properties may be identified, but their total value cannot exceed twice the value of the relinquished property.

95% Rule – The taxpayer may identify as many properties as he wants, but before the end of the exchange period, the taxpayer must acquire properties with an aggregate fair market value equal to at least 95% of the aggregate fair market value of all the identified properties.

When selecting a replacement property, the funds from a 1031 exchange cannot be used for a personal residence (unless it has been a rental property for 2 years), notes, an interest in a partnership, Certificates of Trust, or homes held for sale by speculation builders (among others).

Knowing the rules & regulations, using a Qualified Intermediary, and having the necessary professional help can secure the tax shelter and benefits of a 1031 exchange. 

For more information or an exchange checklist call Kurt Egan at 608-752-6325 Ext. 4.

#FeaturedListingFriday - 1810 Sutler Ave

Retail/Office Space for Lease - 1810 Sutler Ave, Beloit, WI

Space available from 980 SF to 4,500 SF in Beloit's Morgan Square shopping center located on the Milwaukee Rd corridor. Visible from both Milwaukee Rd and Cranston Rd with a traffic count of 17,100 VPD on Cranston. Co-tenants include Dollar Tree, GNC, Sherwin Williams, Concordia University, Allstate, and Rogan Shoes. Great setting with lots of retailers and restaurants close by!

Click here for more information.

SOLD: 4539 Woodgate Dr

Bill Mears represented the seller and Kurt Egan represented the buyer in the sale of this office investment property for $375,000. What a great way to start the new year!