Answers to Frequently Asked Real Estate Questions
What is a 1031 Tax Exchange?
A 1031 tax exchange is a structured process whereby your transfer the proceeds of a real estate investment property into the purchase of a similar real estate investment property. For comprehensive information on 1031's see the IRS site or confer with a licensed 1031 agent.
In laymen's terms a 1031 transfer allows a person to transfer the equity of a rental property into a new investment. The previous property may have been partially or wholly depreciated but the seller will not suffer capital gains tax as long as all of the equity is transferred. Often the new property is refinanced after the transfer freeing up the investor's capital for further investments.
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Do I have to pay capital gains on my home sale?
The following was excerpted from the IRS website.
"If you have a gain on the sale of your main home in 2004, you may be able to exclude up to $250,000 of gain ($500,000 of gain on a joint return in most cases) from income. See Publication 523, Selling Your Home, for additional information.
Your main home is generally the one in which you live most of the time. If you need information on how to compute the gain on the sale or disposition of your home, see Publication 523, Selling Your Home. If your home is condemned or destroyed, you may also be able to exclude the gain. For additional information, see Publication 547, Casualties, Disasters and Thefts and Publication 544, Sales and Other Disposition of Assets.
You cannot deduct a loss on the sale of your main residence."
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Please call me if you have any real estate questions.
Jackie Martin, Realtor
email: Jackie[at]WeSellStLouis.com
We Sell St. Louis
3424 Missouri Ave.
St. Louis, MO 63118
office: 314-772-HOME (4663)
toll-free: 1-866-971-HOME (4663)
cell: 314-495-4428