ECO investing Essentials

1031 = Pure ECO Possibility


I like the idea of serious Investors also being serious Stewards of the LAND...and especially the beloved land of my far-Grandfather here in the Appalachians.

The 1031 Like-Kind Exchange also provides this opportunity.

Here is a 1031 scenario YOU might like...




Scenario :
Let's say you are an ECO-wise Investor interested in a "simple swap" where you trade 150 acres that you own in North Florida for 150 acres of fantastic beauty we currently have listed here in Western North Carolina. That sounds easy, doesn't it? In reality, it is unusual for a seller and the buyer to have exactly the same properties of equal size/value, etc..

So careful attention is in order. ... examples...A tax could be 20% of the gain recognized by the sale due to appreciation of the property on the original cost (basis)...Higher tax rates could be triggered... So, to avoid sticky wickets, we always like to make sure a Qualified Intermediary is close at hand.

Back to the Scenario: Let's say you want an equestrian property in Tryon,North Carolina and want to trade it for your horse farm in Florida, (or vice verse) that's when your Qualified Intermediary can facilitate the exchange and avoid the constructive receipt of the proceeds so you don't end up in a pickle with the IRS.. .

Qualified Intermediary:

A Qualified Intermediary is a person (or legal entity) that under the 1031 regulations enters into a written exchange agreement to act as liaison and facilitator during the 1031 Like-Kind Exchange. This person (or entity) cannot, absolutely, positively canNOT be closely associated with you...canNOT be your trusted accountant or attorney, canNOT be your favorite sister, a family member, your employees, your real estate professional, or your investment banker.

I have interviewed numerous QIs to be sure before I refer my clients to teamplayers of impeccable integrity.

The QI assures you that rather than selling an investment property and personally organizing the purchase of the replacement property, you are in safe hands. S/he handles the proceeds of the sale. They go into a special account to control the funds from the sale and the constructive receipt. .thus avoiding triggering capital gain tax.

Now we are cooking with steam. We have opportunity. We have the team, We have the "win-win" communication in place...and we have the glorious dance of investing.

1031=Pure Possibility!
Speaking of Horse Farms..Guess where I was today?
http://activerain.com/blogs/janeanne


www.Ahseville1031.com