Howard Sumner February 2016 Sponser
- Wednesday, 16 December 2015 09:30
Howard Sumner will be our February presenter. Howard gives us vital information regarding the Real Estate and Rental market. Howard supplies us with Graphs, charts and comparisons to previous years. This is some of the best information you can receive about our local economy from someone in the business who cares about the business.
1031 Exchange of Commercial Rental Property
- Saturday, 15 November 2014 06:32
I just had a client come in to see me that owned a commercial rental property that he no longer wanted. Researching his tax basis we determined that he will have a $150,000 capital gain on sale. Instead of selling the property his realtor has suggested that he do a 1031 like-kind exchange for a residential rental property to defer the gain. The realtor further suggests that he should only rent it out for a year or so, then move in and treat it as a personal residence. By doing this the realtor insists that the deferred gain of $150,000 on the 1031 like-kind exchange would be excluded under Code Section 121 (non taxable gain on personal residence) as long as the client lives in the residence for two years.
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