Advanced Abstract can help you with 1031 exchange in Allentown PA, Bethlehem PA, Easton PA, Reading PA or Stroudsburg PA. A 1031 exchange is defined in law by Section 1031 of the United States Internal Revenue Code (26 U.S.C. § 1031). The allows a taxpayer to capital gains and related federal income tax liability on the exchange of certain types of property.
To benefit from 1031 exchange there are specific guidelines that must be adhered to. These include timelines, like-kind property, investment property, debt and equity rations, constructive receipt and independent qualified intermediary. It is important to note that a 1031 exchange is not possible for personal properties such as a primary residence. It is only applicable to business or investment properties.
Property swaps have become more popular and most are taxable in same way a normal property sale will be taxable. If your swap meets the requirements of 1031 exchange, then you won’t have tax liability at the of the exchange. A 1031 exchange allows you to grow your real estate investment tax deferred. There is also no limit on how many times you can do a 1031 exchange. You can benefit from 1031 exchanges, but they must be done properly.
To help you do it properly there are title companies such as Advanced Abstract who have the knowledge and experience. They understand the finer details as well as the risks associated with a 1031 exchange.
Apart from 1-31 exchanges, Advanced Abstract provides a range of real estate title and mortgage services. These include Title searches, title insurance, conventional mortgages, FHA loans, VA mortgages, short sales, new construction and refinancing.
When it comes to real estate transactions you should not go it all alone. The Team at Advanced Abstract are there to help ensure you make the right decisions and to reduce or eliminate your risks.