| |
Non-Tax Reasons to Exchange
Generally, investors complete tax deferred exchanges to defer the capital gains tax on the disposition of their investment properties. However, there are many additional underlying reasons an investor might want to exchange one property for another. The motives often fall along standard risk-reward or cash flow-appreciation scales. These are some of the typical non-tax motives to exchange
 |
Fred Hanselmann ©
Rocky Mountain Photography
hanselmannphotography.com |
1. Exchange from fully depreciated property to a higher value property that can be depreciated.
2. Exchange from property that cannot be refinanced. For example, moving from vacant land to improved property, which can support a new refinance loan, and will thereby give the client the ability to obtain cash after the acquisition of the replacement property.
3. Exchange from non-income producing raw land to improved property to create a positive cash flow from the rental income.
4. Exchange from a property with maximized or minimal cash flow (an apartment building) to a higher cash flow property (a retail shopping center) to generate a larger cash flow.
5. Exchange from a stagnant or slowly appreciating property to a property in an area with faster appreciation.
6. Exchange for a property or properties that may be easier to sell
7. Exchange to meet the client's location requirements. For example, the client moves to another state and wants to have their investment property nearby for management purposes.
8. Exchange to fit the lifestyle of a client. For example, a retiree may exchange for a property requiring reduced management responsibility so they can do more
traveling.
9 Exchange from several smaller properties to one larger property to consolidate the benefits of ownership and reduce management responsibilities.
10. Exchange from a larger property to several smaller properties. Exchanges can be used to divide an estate among several children or for retirement reasons.
11. Exchange to a property the client can use in his or her own profession. For example, a doctor may exchange from a rental house to a medical building to use for his/her practice.
12. Exchange from a partial interest in one property to a fee interest in another property.
13. Exchange from a management intensive fee interest in real estate to a professionally managed triple net leased property where the lease, including options, has 30 or more years remaining.
RealEstateColorado.Net, Inc. is available to assist Exchangers and their advisors with their exchange strategies. The Exchanger is always advised to discuss the intended exchange with their legal or tax advisor. RealEstateColorado.Net, Inc or it's Brokers cannot provide advice regarding specific tax consequences. Investors considering an IRC §1031 tax deferred exchange should seek the counsel of their accountant and attorney to obtain professional and legal advice.
 |
Jeffery James McClintock
Real Estate Advsior Broker |
Click on the link to our Secure Loan Server for a Colorado Home Loan
If you have a real estate or mortgage question and or would like immediate assistance, please email us. One of us will respond faster then you expect.
For additional resources visit:
Send a Free Colorful Colorado Post Card
Search for Homes and Land in the Summit County MLS
Denver Real Estate
Breckenridge Colorado Real Estate
Boulder Colorado Real Estate
Colorado Springs Real Estate
Ft Collins Colorado Real Estate
Aurora Colorado Real Estate
Colorado Homes for Rent Attention Landlords and Property Management Companies.... Post a Full WEB PAGE AD and POST up to 5 PHOTOS for FREE! of your Colorado investment property on one of the best resources on the internet for Colorado investors to find good quality tenants !
Search For FREE! "Use Your Mouse to Rent Your House" tm
Denver Real Estate Blog Find Denver CO Real Estate News Denver Colorado Homes in our Denver real estate Blog
Breckenridge Real Estate Blog
Search Breckenridge Real Estate News on Breckenridge Colorado homes with our Breckenridge Blog
© Copyright 2004 by RealEstateColorado.net
Top of Page
|
|
|
|
|
