The Florida Dream
Damon Duvall

Listing Search

Orlando Fl 1031 Exchange

Fri, May 17, 2019 at 5:25AM

Orlando Fl 1031 Exchange

Orlando FL 1031 Exchange

An Orlando Fl 1031 Like Kind Exchange is done to defer taxes on the selling of your property. A 1031 Exchange is often referred to as a Starker Exchange because unless you find a property you want before you sell yours most likely you perform a Starker Exchange. According to Forbes Magazine the vast majority of exchanges are Starker Exchanges which are three party or also known as delayed exchanges. These are referred to as "Starker" exchanges after the legal case which allows them. As of 2017 most Like Kind exchanges are now limited to real property so says the IRS.

Construction or Improvement Exchanges

The Improvement or Construction Exchange is an exchange which allows the exchanger to spend any "exchange"equity acquired improving the replacement property. However all of the improvements must be performed and the transaction take place before the 180 day window closes. Normally these improvements are completed while the replacement property is in the hands of the Qualified Intermediary.

We are not accountants. Make your decisions based on your knowledge and professional legal and financial adviser. Some of the important things to consider are below if you are wishing to defer all of the gain acquired from the sale of your relinquished property.

  1. Remember that 180 day window? All of your equity must be used as down payment or improvements by the end of it.
  2. No trickery, you must receive "substantially" the same property which you originally chose. If you are going to push the envelope get legal counsel.
  3. Any changes must be in place before the exchanger receives title and the replacement property must be of equal or greater value to the relinquished property.

Delayed Exchange "Starker Exchange"

The Delayed Exchange is the most common exchange. This exchange involves selling the relinquished property, finding a new property within 45 days and closing on the new property within 180 days. Obviously there are numerous benefits to performing these types of 1031 exchanges which is why they are now so popular. The exchanger must sell the original property and have a Qualified Intermediary hold the taxable proceeds until the successful purchase of the replacement property. A Qualified intermediary is a "Safe Harbor" and great care must be taken selecting one.

Reverse Exchange

Buy first, sell later aka a "Forward Exchange". If you have a great property in a very marketable location this may be a good choice for you however they are more complicated than they appear at first glance. Banks do not like lending money on reverse exchanges possibly due to the failure rate. Consider this type of exchange if you are prepared to go "all cash".

  1. After acquiring the new property you have 45 days to decide which property you will be keeping and which property will become the "relinquished property".
  2. Consult an attorney for legal advise. As of this writing you must still complete this entire process within 180 days.

Simultaneous Exchange

Same day close. A Realtors dream and basically what this type of exchange represents. The downside is if anything happens to keep the properties from exchanging on the same day then taxes will apply. As a Realtor and having decades of experience in Real Estate I can tell you "stuff happens". However experience and being proactive can prevent much of it. Here are the ways that this exchange is normally carried out.

  1. Swapping Deeds where the two parties schedule a time to exchange deeds. Equity cannot be used to improve the new property because it is deeded to you. Contact your accountant or attorney with questions and concerns.
  2. An accommodating party can be used to facilitate the transaction. This is also known as a "three party exchange".
  3. Have a Qualified Intermediary structure and handle the entire exchange simultaneously.

Like Kind Exchange Terms

Cash Boot- The fair market value or money received in the exchange.

Mortgage Boot- additional mortgage amount left over from the first property that is not replaced by the acquisition of the second.

Reduced Basis,200% Rule and the 95% Rule- Ask your accountant or attorney. These matter.

If you are considering an exchange contact us. We would love to assist you. Central Florida is a large place and a great place to have investment properties. Hopefully very soon you will be looking back on a successful Orlando Fl 1031 Like Kind exchange. 




Orlando Fl 1031 Like Kind Exchange

Bookmark & Share

User Comments

Be the first to comment on this post below!

Popular tags on this blog

Dr. Phillips Real Estate | For Sale by Owner | Gated Community | Gated Subdivision | Homes for Sale | Market Statistics and Market Trends for 2013 | Summerport Community | Summerport Market Expert | Summerport Realtor | Summerport Statistics | Summerport - Windermere Fl | Windermere Fl Homes sold | WIndermere Fl Homes Sold by Community | Windermere Florida | Windermere Homes for Sale | Windermere Homes Sold | Windermere Market Snapshot | Windermere Market Statistics | Windermere Market Statistics and Trends | Windermere Monthly Sales | Windermere Real Estate | Windermere Realtor | Winter Garden Florida | Winter Garden Real Estate | Winter Garden Realtor |

All listing information is deemed reliable but not guaranteed and should be independently verified through personal inspection by appropriate professionals. Listings displayed on this website may be subject to prior sale or removal from sale; availability of any listing should always be independent verified. Listing information is provided for consumer personal, non-commercial use, solely to identify potential properties for potential purchase; all other use is strictly prohibited and may violate relevant federal and state law. The source of the listing data is as follows: | Stellar MLS (updated 11/29/20 9:01 PM)
Featured Listings
Altamonte Springs Real Estate
4.5 BATH
STUNNING newly built LAKE VIEW LUXURY Mediterranean custom ESTATE. This home has it all! LAKE VIEWS, LAKE ACCESS, LU... Read More
Altamonte Springs Real Estate
Beautifully maintained and remodeled lakefront on Spring Lake! So close and convenient to downtown, the attractions and... Read More
Apopka Real Estate
THE OPPORTUNITIES ARE ENDLESS! This 4 bedroom/3 bath home sits on 4.81 prime acres of high and dry land. Access to Hwy... Read More
Apopka Real Estate
3.5 BATH
Experience fine Florida living with this incredible Mediterranean style home sitting right on Lake Apopka! With complete... Read More
Apopka Real Estate
SPECTACULAR CUSTOM HOME WITH PANORMAIC VIEWS OF BEAR LAKE!!! This four bedroom, three bath home has over 3700 square fe... Read More
Apopka Real Estate
This renovated sanctuary is located on pristine BEAR LAKE, one of Central Florida''s CLEANEST SKI LAKES. As you enter t... Read More
Belle Isle Real Estate
5.5 BATH
It''s all about the Lakefront Lifestyle! This gorgeous home on Lake Conway gives you access to the Conway Chain of Lakes... Read More
Chuluota Real Estate
Elite Equestrian Training Facility in the heart of Central Florida. This premier 40-acre boarding and training facility ... Read More
Chuluota Real Estate
Resort style home on one of the most pristine lakes, with over 1000 feet of lake frontage, with additional land to bui... Read More
Damon Duvall


Wendy Morris LLC
DBA Wendy Morris Realty
Licensed in the State of Florida
BK 3146762
14832 Speer Lake Drive
Winter Garden, FL 34787

Your privacy is our utmost concern. We will never sell your personal information. Privacy Policy
©2011 -2020 - all rights reserved. | Site Map | Orlando Fl 1031 Exchange