1031 Exchange: An Advanced Real Estate Strategy

The vast majority of commercial real estate buyers don’t make use of the wealth-building advantages of the tax-deferred 1031-Exchange. Once a property sale goal is realized, many owners sell the property, pay taxes, and then purchase other real estate, without using a 1031-Exchange. 1031-Exchanges are useful in a wide variety of circumstances. They provide excellent opportunities for resourceful buyers to create transactions which would not be possible through a sale-purchase format.

“Like-Kind” Property Exchanges

The Internal Revenue Code Section 1031 land exchange (a) (1) says, “no gain or loss is recognized if property held for productive use in a trade or business or for investment is exchanged solely for property of a like kind to be held either for productive use in a trade or business or for investment.” What does the code really mean? Property that is held for investment can be exchanged for any other property that is being held for investment and the owner will be allowed to defer paying capital gains taxes.

What are some properties held for productive use in a trade or business or for investment? The list includes apartments, single-family rentals, office buildings, retail centers, warehouses, farms, hotels, and raw land, to name a few.

The way the code reads, any combination of these properties can be exchanged. For example that means an apartment can be exchanged for an office building, a warehouse exchanged for a retail center, or raw land exchanged for a single-family rental.

In an exchange of real property for real property, the fact that any real property is improved or unimproved is immaterial, because that fact relates only to the grade or quality of the investment property and not to its kind or class.

Growing Equity Without Capital Gains

The overriding advantage of a 1031-Exchange lies in the ability to move equity from property to property without having to pay the capital gains taxes. Exchangers can create an entire purchase program using the wide variety of benefits available, and a buyer can move successively from one 1031-Exchange to another any number of times. You don’t need to wait until a property is under contract to get the process started. Please contact us to discuss your specific requirements.

Revamping Your Home for Better Living

Houses and apartments need renovation after a period of time to bring them back to life. The interior of your home becomes unhealthy for human living after some years. Moreover, new ideas in style and décor cannot be implemented in an old style interior. And if you try to fit some new décor ideas there, they simply do not brighten up the place as expected. Whether you need some partial renovation of your home or you are planning for an entire house restoration, you need SUNNY HOUSE CONSTRUCTION professional services. Only professionals can understand the right amount needed for the face-lift of your house or apartment.

Revamp the Interior

If your house or apartment is in a perfect condition but you still wish to revamp the interior, think of renewing the electric lights. With new lighting network at home you can bring a huge change in the décor of your house. You can see that the modern lightings are elegant and come in a huge variety. You can find several elegant lighting options for your interior and exterior. The only thing you need is a professional Electrician in Toronto. The professional service can add to the home the high value of your renovation expenses. The décor or beauty that you are wishing for is only possible if you hire a high-end service. This is the most important step because the entire end result depends on how the lighting is planned.

Moderate Changes

Old house revamp on moderate scale is all about wall painting, lighting, plumbing etc. This is pretty sufficient if you are not in need of bringing root changes in the kitchen, basement and bathrooms. This moderate house revamp can take your lifestyle to a next level and you can enjoy modern tech-based décor and comfort at home. Modern houses focus on color themes of the house which is mainly maintained through wall painting. Plumbing and lighting is an additional makeover that adds tons of comfort and freshness to your life.

Renewing Plumbing

With professional plumbing in Toronto you can change the old plumbing system of your kitchen and bathrooms and replace it with modern equipment and more efficient piping. Once you are able to maintain a classy kitchen and washrooms, your home living experience improves many degrees. It seems that just plumbing is not a significant change at home but the kitchen and bathrooms claim to be of focal importance of your home life. And modern plumbing can bring more practicality to your life.

Hire Professionals

The best thing about moderate revamp is that it can be done to your apartment or your home without spending a huge amount of cash. With a limited budget you can do entire home electrical wiring, lighting and plumbing. Just look for professionals services with wide experience in Toronto home renovation. Their skilled staff can accomplish each task whether small or big in an expert manner. You can inform the company about your dreamed changes and the end result. They can make it happen with flawless perfection.