When it comes to property law, there are a couple of things that you hear being floated around and wonder what they are and how your property benefits. An example is the 1031 exchanges. 1031 exchanges refers to the switching of your property for another without any money being involved. You can call it some barter trade. This way there is no taxation in the exchange because there is no cash involved. The amazing thing about this kind of trade is that you get to do 1031 exchanges without any limitation because there is no law as to how many times you can 1031 your property. Determine the best information about 1031 exchange www.1031gateway.com.
You need to know that 1031 exchanges do not apply for personal property but only for the business assets that you own, which means you cannot do a 1031 exchange with the home you currently living in or your car. However, there are limited cases where you can do this exchange for your vacation homes.
1031 exchanges do not always have to be between properties that are the same. Even with the like-kind provision you still hear of swaps between properties that of no relation. An example would be a swap between a plantation and a mall strip, or some real estate and undeveloped property. This makes 1031 exchanges very beneficial to you if at all you are looking to swap your business for another.
Sometimes you would like to do an exchange, but there seems to be no one who wants your kind of business at that moment. There is a solution for this in 1031 exchange. You can involve a third party in the exchange, such that they hold to the money you get from making a 'sale' so that you do not handle it because if you do it ceases to be a 1031 exchange and becomes a traditional sale. Once the third party gets a property that suits you, they purchase it for you and the exchange is complete. Verify the information that you've read about 1031 exchange rules is very interesting and important.
However, there are some guidelines to exchanges involving third-parties. The exchange needs to be complete within 180 days, or the deal falls through.
Remember that you will be taxed on any money you receive on the property. If you get money on top of the asset you are acquiring because your property was of higher value, then you will be taxed. You need to be ready for that.
These 1031 exchange rules will get you started on this exchange that is fast becoming trendy. You can get more information on 1031 exchanges from 1031 Getaway so that you know how best to protect your assets during such exchanges. Seek more info about 1031 exchange https://en.wikipedia.org/wiki/Internal_Revenue_Code_section_1031.