Campton, NH, April 29, 2007 --(PR.com
)-- If someone told you about a perfectly legal way to sell your investment property without paying a single dime in taxes on the proceeds, would you think it's too good to be true?
It's not. The 1031 Exchange is not only the real deal, it's being used more and more by people selling their investment property in the White Mountains region. One local real estate agency is stepping up their efforts to educate property sellers (and buyers) about the 1031 Exchange, so named after the IRS tax code section where it appears.
"It's also referred to as the 'Starker' or 'like-kind' exchange," says Stephen Loynd, Managing Broker at Alpine Lakes Real Estate's Lincoln office. "Put simply, if you sell property, you can defer taxes indefinitely if you use the proceeds to buy a similar property of equal or greater value."
Like most things involving the IRS, Loynd suggests being prepared in advance is critical to making the transaction work out right. The IRS has specific time limitations that must be followed, so it's best to plan for the 1031 Exchange before putting a property on the market.
"You need a company to serve as what the IRS calls 'a qualified intermediary' (QI) to take advantage of the 1031," says Loynd. "We've worked with a number of QIs on behalf of our clients, and it's a fairly simple process. It works a bit like escrow - the seller never receives the actual cash from the property sale. Instead, the QI holds the proceeds of your sale.
"After the sale, you have 45 days to find a property to buy. Then you have 180 days to close on the property. It really is that simple," explains Loynd. "But the IRS is very strict about the 45-day and 180-day deadlines, so we always recommend that sellers talk to their tax advisors before they start the process."
Because of the increased interest they've seen in 1031 Exchange real estate transactions, Loynd and the team at Alpine Lakes Real Estate is developing a free special report based on the most frequently asked questions coming from their clients.
Available in June 2007, this free report can be pre-ordered through the contact form on their website, www.AlpineLakes.com.
Loynd hopes the report will help educate interested sellers and buyers about the 1031 Exchange. "It's a great opportunity to defer taxes indefinitely on qualified real estate transactions, and we want to make sure our clients, friends, and neighbors in the White Mountains know it's available to them."
About Alpine Lakes Real Estate
Alpine Lakes Real Estate has been building long-term relationships in the White Mountains region for more than 20 years. Their extensive real estate expertise is enhanced by their vast knowledge of the entire building process, regional history, and area heritage. With offices in Lincoln and Campton, NH, Alpine Lakes Real Estate offers friendly and experienced guidance, assistance with IRS 1031 "like-kind" exchanges, and even the Design-Build services of their in-house architect. For more information about Alpine Lakes Real Estate and the stunning White Mountains region they call home, go to www.AlpineLakes.com.