Posted on: 01st Jan, 2010 05:46 pm
can you do a 1031 property exchange with out between two property owners it would be like swapping houses
Hi rondinger!
Welcome to forums!
In a 1031 exchange, the investment property owner sells off his current property and exchanges it for a similar property which is of equal or higher value. If both the property owners satisfy this criteria, then they will be able to go for the 1031 property exchange. This will help the seller to defer the capital gains tax payments and the penalty of recaptured depreciation.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
In a 1031 exchange, the investment property owner sells off his current property and exchanges it for a similar property which is of equal or higher value. If both the property owners satisfy this criteria, then they will be able to go for the 1031 property exchange. This will help the seller to defer the capital gains tax payments and the penalty of recaptured depreciation.
Feel free to ask if you've further queries.
Sussane