“Presented By Hill Country 1031 Exchange”  

When selling or buying investment or business property, be aware of an easy opportunity to defer tax on the gain on the transaction by using a Like-Kind 1031 Exchange . A wide variety of transactions will qualify, and contrary to popular belief, all real-estate is like kind. For example you may exchange a rental house for vacant land, a shopping center for apartments, a ranch for an office building and on and on. Long term property leases, mineral rights and oil & gas working interests may also qualify as real estate.

And different transaction structures may be used:

• Sale of property with the proceeds used to purchase one or more replacement properties.

• Purchase of a new property followed by the sale of a property you currently own.

• Sale of property with the proceeds used to construct a new building.

    The key to making sure that the transactions qualify for exchange treatment is the IRS requirement that both sides of the transactions are handled at closing by a qualified intermediary, such as Hill Country 1031 Exchange. The property to be used for the second part of the transaction must be specifically identified within 45 calendar days and, in most cases, both sides of the transaction must be closed within 180 calendar days.

    Personal residences do not qualify for exchange treatment.

    The potential for tax savings absolutely makes it worthwhile to consider the use of a Like Kind Exchange before you close a sale or purchase of investment or business property. The steps needed to create an exchange are simple and are handled by the exchange intermediary and the title company processing your transaction

Hill Country 1031 Exchange

Elsie Thurman, CPA

830.596.0561