You have an investment property that has gained sweet equity but you are concerned about the possibility of capital gains and want your money to continue to work hard for you. You are confident that Arizona rental properties will continue to be a great investment vehicle.
Perhaps there has been an increase of crime and/or commercial intrusion that make selling and exchanging a smart move.
Here are five quick facts to know prior to placing that rental property on the market:
1. You will have 45 days from the final sale date to identify a "like kind" investment property. (Does not have to close in 45, but you need to have identified through a purchase contract or other legal means.)
2. A "like kind" investment property may be defined as: vacant land, another rental home or even a office building. Warning! Land puchased with plans to build your own home on it is probably NOT "like kind".
3. Locate a good 1031 Exchange service that offers reasonable rates and is recommended by another professional service such as your local title company, legal counsel or tax specialist.
4. Notify all parties that may be involved in the sale of the rental property that you are participating in a 1031 Exchange for this transaction. (This includes your Real Estate Agent and the Title company).
5. Understand and be educated on the 1031 process so as not to breach the requirements for keeping the proceeds in a protected account. When those proceeds are "exchanged" for the "like kind" investment property by a professional facilitator, you have accomplished your goal!
Advantage Arizona Real Estate understands the many benefits of a 1031 Exchange. We have participated in many "like kind" investment property sales transactions. You can be comfortable knowing that we work closely with all parties and understand the 1031 requirements.
We will help you identify your new "like kind" investment home.
Contact us today for a consultation regarding the benefits of a 1031 Exchange of investment property in Arizona.