All Forum Posts by: Laura Krukowski

@Laura Krukowski I sent you an email.  But will reply here as well.  This is called a partial exchange and it's perfectly fine.  There is a video on my youtube channel as well that explains more fully.  I can't post that link but youtube googling my company name will get you to the channel.  And if you find it please like and subscribe ( I've wanted to say that phrase all my boomer life :)

Hello Laura! Any property held for productive use in a trade or business or for investment CAN be exchanged for like-kind property. Like-kind refers to the nature of the investment rather than the form. Any type of investment property can be exchanged for another type of investment property. A single-family residence can be exchanged for a duplex, raw land for a shopping center, or an office for apartments. Any combination will work. The exchanger has the flexibility to change investment strategies to fulfill their needs.

Anywhere I can buy property still for cheap

Possible good investment?

Iowa? Nebraska?

I have not been keeping up lately although now i am.

I live in NYC.

Hey everyone, I'm looking at Windham and I found the proposed STR draft regulation from Nov 2020 including cap on 150 STR permits but then withdrawn days later due to pushback.

https://www.townofwindhamny.com/news/withdrawal-of-draft-sho...

where does this stand and what are the likely risk of this rearing it’s head again (if it hasn’t already and I missed it).

thanks

@Laura Krukowski. Is the contract the exact same one as the agents use? If so, i'm not a licensed agent in NY. In addition, wholesalers are not supposed to act in the capacity of a real estate agent in most, or all states. Do you know if other wholesalers in your state that are wholesaling, but not a licensed agent? Thanks Laura :)

@Laura Krukowski, Most would say I'm already nuts.  You didn't contribute at all :). If you want to defer all tax you must purchase at least as much as your net sale and use all of the cash from your sale.

You can purchase less than you sell.  And you can take cash out.  But when you do the IRS says that difference is taxable as profit.

So in your case if you sold a property for say $500K with a profit of $300K.  You would need to buy a property or properties totaling at least $500K.  If you wanted to only purchase a $250K property you would pay tax on the $250K difference but shelter the other $50K of profit.  If you purchased two $200K properties you would only pay tax on the difference between $400K (the aggregate of your purchases) and would shelter the other $200K of profit.

From your scenario it sounds like you may be selling a property for $300K (not necessarily with $300K of profit).  In that case you need to purchase at least $300K to defer all tax.  If you buy $250K then you would pay tax on the $50K and shelter whatever gain was left.

@Laura Krukowski, Any type of investment real estate can be exchanged for any other type of investment real estate.  So yes, land held with an investment intent can be exchanged for any other type of investment real estate - commercial residential, etc.

Remember, like @Bill B. said, that the QI for your 1031 exchange has to be in place before you close the sale of your old property.  You can be under contract.  But you can't close without the 1031 being in place with your intermediary.

the bright side is that the tax on $20K won't be too large of a tax bill (although NY will stick it to you state wise) if you've already sold.  And by the time you factor in the savings by not doing a 1031 you're not going to be too bad off at all.