Highlands NC Real Estate and the 1031 Exchange
Highlands NC real estate and the 1031 exchange often go hand in hand. This is a way for real estate investors to sell one property and buy another without having to pay taxes on the capital gains at the time. The taxes are deferred until a sale is not tied to another purchase. Understanding the 1031 exchange is essential to your success. An experienced Highlands NC REALTOR understands the process but an attorney specializing in real estate tax law is always advised to ensure all the rules are met.
What you need to know about a 1031 exchange
This tax-free real estate transaction is for investment properties. This means that neither the property you are selling or buying can be your primary residence. In addition these properties must be investments. Commercial properties are clear but vacation properties also work as they accumulate value over time and can also be rented out. There are many Highlands NC properties that can be identified to meet this goal.
The 1031 exchange must involve a sale and a purchase. When an investor decides to sell a 1031 property he must identify another property as a part of the sale. Furthermore the replacement property must be considered a “like-kind”. One investment must be replaced by a similar investment.
Learn more about buying and selling real estate in Highlands NC
Contact our team at Berkshire Hathaway HomeServices Meadows Mountain Realty today to learn more about real estate in Highlands NC. We welcome the opportunity to update you on current market conditions while getting you started on your property search. Let our knowledge and experience serve as your guide, including getting you up to speed on Highlands NC real estate and the 1031 exchange.
Click here to read “Understanding the “Tax Free” Exchange” from Realty Times.