All Forum Posts by: Casey Schultz

Correct, and thanks Bill.  We're confusing 1031 with capital gains rates.....1031 hasn't changed.  Capital gains rates have been graduated based on your income.

Also, with a lot of money invested in real estate @Joel Owens....Leaving it to my heirs may not be mine, or my clients first option.

@louis Leone you are absolutely right.  If you exchange commercial property (including residential rentals) for property of the same value it is NOT a taxable event.  The recapture goes away in that case too as part of the 1031.  It's the exit strategy from owning rentals and commercial property that gets really tricky...There's some IRS case law on how long you need to rent a place before you can make it your primary residence.....but then you could eliminate $500,000 in gain as personal exemption (husband and spouse).  

Add 11% for some State Tax and you are looking at substantial taxes on substantial gains.  Also, recapture is an issue.  Taxed at 25%!

Long-term capital gains and qualified dividends

A top rate of 15% applies to qualified dividends and the sale of most appreciated assets held over one year (28% for collectibles and 25% for depreciation recapture) for single filers with taxable income up to $406,750 ($457,600 for married filing jointly). Long-term capital gains or qualified dividend income over that threshold are now taxed at a rate of 20%.

EXAMPLE: If a married couple already has $457,600 of taxable income and an additional $100,000 in long-term capital gains and qualified dividends, the entire $100,000 would be subject to the 20% rate. If, however, they only had $400,000 of other taxable income, then $57,600 of the additional amount would be taxed at 15% and $42,400 would be taxed at 20%.

Thanks All.  Great information.  I've become somewhat of an expert on the new 1031 tax laws.  It's now tied to your income so even worse news if you are a high wage earner.  We have worked a deal.  My two rentals are currently under contract and we intend to buy one large home and finish a basement apartment.  If anyone has 1031 questions let me know...I've discovered some great information for the changes for 2014.  I'm not on everyday so please give me some time.....

I'm wondering if anyone is an expert on or has experience with doing a 1031 exchange with two homes for sale at one time?  I have a condo in St Petersburg, FL, and a home in Northern Colorado and I'm wondering if I can postpone my gain by selling the two at the same time - with the intent of buying one home in the Denver Metro area?  Who's a tax expert?