Category Archives: 1031 Tax Deferred Exchange

Are you a Real Estate investor thinking of a 1031 Exchange? Or, a homeowner looking to avoid a huge capital gains tax? Tune in to find out how…

Exchange Expert Toni Esposti.
1031 Exchange Expert Toni Esposti.

Toni Espositi of Old Republic Exchange Company (OREXCO) joins us on the Real Estate Hour Sunday June 5th 9-10AM pst., 1350AM, 103.5FM, and streaming live with Podcast immediately following the show at KSRO.com.

Regional Sales Office – California ‒ Northern
& Pacific Northwest – Ms. Toni Esposti, CES®

Vice President & Regional Sales ExecutiveToll Free: 888-677-1031
E-mail: tesposti@orexco1031.com

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There’s a very informative brochure on the OREXCO website at: https://orexco1031.com/Downloads/OREXCO_brochure_English.pdf

Here are some answers to common questions from the Orexco website FAQs . For one on one, specific answers to all your 1031 questions, call in during the show 707-636-1350 or contact Toni Esposti directly: Continue reading Are you a Real Estate investor thinking of a 1031 Exchange? Or, a homeowner looking to avoid a huge capital gains tax? Tune in to find out how…

1031 Exchanges making a big rebound! Debra Culbertson of First American Exchange Co. joins me this week!

We welcome this week Debra Culbertson to talk "Exchanging" of property equities--YES! We have EQUITY again!
We welcome this week Debra Culbertson to talk “Exchanging” of property equities–YES! We have EQUITY again!

Sonoma County real estate Investors are seeing a new reason to use the IRS 1031 Exchange option as equities soared during the past two years. But since many have NOT used this tax code in many a year, we are bringing to the show our local expert–Debra Culbertson.

She is the Northern California Sales Manager for First American Exchange Company and  has specialized in 1031 exchange transactions for over 15 years with First American Exchange. Debra also has experience in commercial real estate leasing, commercial title insurance and TIC (Tenants in Common) brokerage.

30 North Street
Healdsburg, CA 95448

Cell: (408) 857-8213
Toll Free: (800) 833-4343
dculbertson@firstam.com

PLUS–Our “Stager” Denise Frye of “Make Your House a Home” will drop by to give us some tips on staging a home for the Holidays! All this and YOUR questions on the longest running Real Estate Talk show in the Bay Area!! KSRO’s “Real Estate Hour”, every Sunday, 9 to 10am, PST, 1350AM or streaming LIVE at www.KSRO.com

 

1031 Tax Deferred Exchanges–Crucial reminders of WHY you should be concerned come April 15th!

As April 15th looms ahead, those in a 1031 Exchange need to be mindful of the time lines, especialy if you are WITHIN the 180 days of closing on your property or if you’ve just started the Identification process!! Great “Year-End” tax strategies for those in a 1031 Exhange with a tax deadline looming from our show favorite Toni Esposti or Old Republic Exchange Services. Also, don’t forget our 5 part series on “YouTube” on Tax deferred Exchanges.

 

Toni Esposit as she appeared on the “Real Estate Hour”, Sundays, 9 to 10am, KSRO, 1350AM or www.KSRO.com

 Tax Deadlines and Reporting an IRC §1031 Exchange

With tax deadlines occurring in March and April, it is important to remember that an IRC §1031 tax-deferred exchange must be reported on IRS Form 8824 for the year in which the property is transferred to another party in a like kind exchange. Applicable due dates for filing federal tax returns are as follows:

  • Individuals, single member LLCs and sole proprietorships – April 15th
  • Partnerships and multi-member LLCs – March 15th
  • Corporations – the 15th day of the third month after the end of the corporation’s chosen fiscal year

Form 8824 and instructions to complete Form 8824 can be found at the following IRS links:

http://www.irs.gov/pub/irs-pdf/f8824.pdf
http://www.irs.gov/pub/irs-pdf/i8824.pdf

Finally, although most taxpayers have 180 days to complete an exchange, some taxpayers will have less time if their tax filing deadline occurs prior to the expiration of 180 days1

In order for those taxpayers to get the benefit of the full 180 days, they must submit a request for an automatic extension of time to file their return.  Individuals must file IRS Form 4868, “Application for Automatic Extension of Time To File U.S. Individual Tax Return”, in order to obtain the benefit of the full 180-day exchange period. Business entities must file IRS Form 7004, “Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns”.  These forms can be found at the following IRS links:

http://www.irs.gov/pub/irs-pdf/f4868.pdf
http://www.irs.gov/pub/irs-pdf/f7004.pdf

For more information about IRC §1031 exchanges, please visit www.orexco1031.com or call 800-738-1031.

                                                                       
1The exchange period expires on the earlier of the following two dates:

(1)    The  due date of the taxpayer’s tax return for the year in which the property sold
or
(2)    180 days after the date the taxpayer transfers the property.

Therefore, if an individual, single member LLC or sole proprietorship transferred a relinquished property on any date between October 18th, 2012 and December 31st, 2012, the due date to complete the exchange is April 15th, 2013.  If a partnership or multi-member LLC transferred a relinquished property between September 17th, 2012 and December 31st, 2012, the due date to complete the exchange is March 15th, 2013. To get the benefit of a full 180 day exchange period, taxpayers must file a request for an extension of time to file their return.

You Tube Video’s on 1031 Tax Deferred Exchanges-The Investor’s IRS gift!! Part 1,5

Those of you seeking a 1031 IRS exchange, which deferrs your tax until you eventually sell and take your capital gains, this video I recorded earlier on my radio show and since the IRS code for exchanges rarely changes, this video bears watching! I’m going to post all 5 parts of this show.

Below find the links to ALL 5 parts of our 1031 Exchange Broadcast

Part I just click on this LINK to go to You Tube. Alternately you can go to You Tube and search 1031 Exchanges and you’ll see all of the shows plus other video’s I’ve done.

Part 2 just click on this LINK

Part 3 just click on this LINK

Part 4 just click on this LINK

Part 5 just click on this LINK

Santa Rosa,Ca interest rates forecasting 6%–Don’t Panic!

Santa Rosa Home Prices and this real estate market are buoyed by a tsunami of cash! Wow!  The government just raised our budget deficit cap AGAIN! 12.4 Trillion Dollars!! This government has been subsidizing real estate for years! We had silly money replace 20% down, allowed wacky debt to income ratios, and everyone from the lowly mortgage broker and Realtor/agent to Moody’s made a ton of dough in the process! We had NO checks and balances.

  Now we have major subsidies in the form of a government which knows without a housing recovery we are in “deep doo-doo” (to quote Ross Perot!) Continue reading Santa Rosa,Ca interest rates forecasting 6%–Don’t Panic!

Sonoma County Investors: Three Simple Steps You Can Take to Protect Your Client’s 1031 Exchange

 
Here in Sonoma County, California, as a real estate investor, you are faced with a myriad of issues to resolve during the course of your real estate transaction. .. One common issue you the investor is going to face is dealing with the popular tax saving procedure – the IRC §1031 exchange.Arming yourself with information about the exchange process will help you avoid common pitfalls such as a failure to properly comply with the IRS requirement that the purchase and sale contract – whether it be for a relinquished property here in Sonoma County, California (property to be disposed of in an exchange) or replacement property (property to be acquired in an exchange) – be assigned to the Qualified Intermediary (“QI”) and that the other party to the contract receives written notice of the assignment. Although your QI should provide the appropriate form of assignment and notice, you need to know to ask for it. I as our Realtor can recommend Highly Toni Esposti as your “Qualified Intermediary” without hesitation. Continue reading Sonoma County Investors: Three Simple Steps You Can Take to Protect Your Client’s 1031 Exchange