Yes, 1031 exchanges are still allowed in Charleston! Depending who is in charge of the government, eliminating the benefits of the 1031 exchange seem surface in tax reform discussions from time to time. But for now, the 1031 is safe…
What Properties Qualify For An Exchange Properties that qualify for a 1031 exchange in Charleston must be real estate held for investment or business use. These include rental homes, apartment buildings, commercial properties, and raw land. However, personal residences and…
A Common Question…Can You Do a 1031 Exchange on a Second Home? In most cases, no. A second home counts as personal-use property, which does not qualify. Consequently, if you rent your second home, report the income, and follow the…
Is Doing a 1031 Exchange Really Worth It? For most Charleston investors, the answer is a resounding yes. A 1031 exchange is often worth it because it allows you to defer capital gains taxes when selling an investment property, keeping…
What does understanding cap rates mean for real estate investors? Understanding cap rates means knowing exactly how well your property performs compared to the market. A cap rate (capitalization rate) shows the relationship between a property’s net income and its…
How does a 1031 exchange work when selling property in Charleston, South Carolina? A 1031 exchange in Charleston allows you to defer capital gains taxes when selling an investment property, as long as you reinvest the proceeds into another qualifying…
Capital Gains Tax: The Wealth Destroyer What Are Capital Gains In Real Estate? Capital Gains In Real Estate occur when the profit you make from selling an asset, is more than your homes adjusted basis. The difference between the selling…
A Simple Explanation of How 1031 Exchanges Work and When They Apply Let’s explore 1031 Tax Deferred Exchange Basics and how you can defer your capital gains when exchanging “like kind” investments. To begin I’d like to share that during…