1031 Exchange Illinois: Things You Didn’t Know About 1031 Exchange
1031 Exchange Illinois: While tax geeks work with the 1031 exchange almost daily and therefore dream the meaning of the expression, us, ordinary “mortals” rarely have to deal with this document. However, that doesn’t mean that the 1031 is not slowly but surely making its way in the daily conversation of people.
Do you want to be able to join the conversation?
Then you are perhaps wondering what a 1031 exchange is. Well, it is also known under the name of Like-kind exchange… or Starker. It defines the swap of one business for another. You can also swap and investment asset for another using the 103 exchange.
In Christian County, Decatur, Illinois, Montgomery County, Shelby County, Springfield, Taylorville and the entire US most of these swaps are taxable as sales. But if you come up with a 1031 exchange you will enjoy no tax (or limited tax) at the time of the exchange.
If you already knew these things about the 1031, then here are some of the things you probably didn’t know about until now:
- The 1031 is not for your personal use; still, some types of properties allow the use of 1031. For example, you can’t swap your primary house, but you can swap vacation homes.
- You can run a delayed exchange with the help of a third party “helper”. The middleman will hold the cash after you “sell” your property and use it to “buy” the replacement property for you. This is because in most cases it is very difficult to find someone who likes your house and whose house you like.
- You can declare multiple replacement properties. You can declare as many replacement properties as you wish as long as the fair market value of these properties does not go beyond 200% of the aggregated fair market value of the exchanged properties.