Frequently asked Real Estate questions

JIM SPANGLER CRS GRI

1-937-305-8863

9 Most Commonly Asked Questions about Tax Deferred Exchanges

1. Who is eligible for an exchange?
Any taxpayer looking to defer the taxable gain realized upon the sale of investment property or property used in trade or business.

2. How is an investment property defined?
Any property which is not considered a principle place of residence and is used to generate income now or in the future (e.g. rental houses, commercial buildings, undeveloped land).

3. Why enter into an exchange?
Due to the tax reform acts of the 1980ís, one of the only ways left to avoid the capital gains tax is to enter into an exchange. The exchange does not eliminate the capital gains tax, but defers it.

4. How do you enter into an exchange?
Contact a qualified intermediary prior to the sale of the relinquished property.

5. Is there a limit to the number of exchanges possible?
No. The capital gains tax can be deferred each time an exchange is properly completed.

6. Do the properties being exchanged have to be alike?
No. The only qualification is that real estate be exchanged for real estate (e.g. a two family property may be exchanged for vacant land).

7. Do I need to know the property I am going to acquire prior to the sale of my investment property?
No. The replacement property does not have to be identified until 45 days after the close of the exchange property.

8. How quickly does the exchange need to be complete?
The exchange generally must be completed within 180 days after the sale of the exchange property. However, the replacement property must be acquired before the earliest of either 180 days after the transfer of the exchange property or the due date of the taxpayers return.

9. During the 180 days waiting period, can the funds be invested?
Once the proceeds from the sale of the investment property have been deposited with a qualified intermediary the funds may be invested upon request.

HOMES FOR SALE IN THE DAYTON OHIO AND SURROUNDING AREAS

RELOCATION SERVICE TO AND FROM THE DAYTON OHIO REAL ESTATE AREA

Whether you are interested in buying, selling, investing, renting or just want to stay updated on the Dayton real estate market, this site has all the resources and tools you need to help prepare yourself for a great real estate experience here in Ohio .