Would Tom Selleck do a 1031 EXCHANGE???

Recently, the IRS changed the "SAFE HARBOR GUIDELINES" for a vacation property and it's qualifying for a 1031 exchange. "How does this affect me?" you ask? Well short story long, if you have a condo in the hills that you rent out, through a co-op or other arrangement, but you personally have used it in the past, it did not qualify for a 1031 exchange. Now those rules have been relaxed. According to Mary Lou Schwab of Bankers Escrow Corp. these rules are more flexible so that if you use the home less than 14 days a year in the last 2 years, it is a slam dunk. In fact there are even some situations which might lend themselves to more flexibility. The trick is to have a good qualified intermediary. See Mary Lou's latest article at http://www.bankersescrow.com/1031/Newsletters/03.08.html or contact her at marylou@bankersescrow.com

What is a 1031 Exchange? That occurs when you sell an investment property and replace it with another, deferring any accumulated recapture of depreciation and capital gains, however, it is not that easy. There are contract clauses and time lines you must adhere to, according to the IRS. It is even more important to have (in addition to the QI) a Denver Real Estate agent who knows the ropes, and where to find the answers. The last thing you would want to do is close on a new income property 2 days after the deadline and be required to pay capital gains on all the depreciation, as well as the calculated gain on the property! That could ruin your tax year!

When you own out of town rental properties, management can be expensive and bite into the profitability and cash flow. Sometimes the better solution is to liquidate those assets and acquire local Denver rental homes as replacements. The 1031 can let you do that tax deferred. We can even offer agents across the country who can assist you in the remote property liquidation OR new replacement property acquisition. Talk to Pete 1-800-571-7383 or 303-880-5585

Insight and knowledge like this comes from my 22+ years of experience in the Denver Real Estate market. Put it to work for you! We can help you fill your real estate needs in Highlands Ranch, Lone Tree, Littleton, Castle Rock, Centennial, Englewood, Parker, Elizabeth, Larkspur, Franktown, Kiowa, or anywhere in metro Denver Colorado. We offer real estate advice, properties for sale, multiple listing service, property listings, mls, all available at www.DenverRelocation.com. Drop me a note to pete@Denverrelocation.com