Ric Moody's (ricmoody) Blog

In today's real estate market, this is a great question that commonly arises: "What does happen if you sell a property bought in a 1031 exchange at a loss?" Let's say, for example, you have a buyer with cash in hand offering you $175,000 for a rental property you paid $200,000 for as part of a 10...

Hello everyone, I have been writing for some time about the benefits of 1031 Exchanges. I have been getting lots of great comments about my blogs. Instead of me reffering my web site to my free report on 1031 Exchanges.....I am bringing the link to you today. Please feel free to download the repo...

The §1033 Roll-Over Exchange    If a taxpayer loses their property through an "involuntary conversion", Section 1033 of the Internal Revenue Code can provide relief.  An involuntary conversion occurs when property is destroyed (i.e. fire, flood or hurricane as examples), stolen, condemned, or dis...

1. Segregated FDIC insured accounts     Make sure your QI does not commingle your 1031 money with other people's money. At a minimum, have your QI deposit your exchange proceeds in a segregated demand account with a FDIC financial instition, It will be insured up to $250,000 by the U.S. Governmen...

In any type of building, residential or commercial, there are real estate components, such as the structure itself, and there are personal property components. Personal property is the IRS term for items that are "movable" such as light fixtures, carpeting and window coverings. These type of pers...

When Congress passed the Housing Assistance Act of 2008, their goal was to help those people who were losing their homes in foreclosure. One of the side effects of the bill, however, was a change that could affect taxation on the gain from the sale of YOUR personal residence. If you sell a primar...

With a typical 1031 exchange, you can sell your investment property without paying taxes when you purchase another investment property of equal or greater value. But, there's a hitch - you must sell your old property before you buy your new property within a strict 180-day time frame - in order t...

Clients considering the sale of investment or income property should first consult their financial or tax advisor to determine if a tax-deferred exchange will benefit their long-term investment goals and retirement plans. Ultimately, your client must decide whether to take advantage of an IRC Sec...

CAN MY CLIENT TAKE SOME CASH OUT WHILE STILL DOING AN EXCHANGE? Yes!  However, any cash received will be subject to capital gains tax. Your client may take cash out at the closing of the sale property or upon completion of the exchange. Since they will be taxed on any proceeds being removed from ...

AFTER THEY'VE CHOSEN A QI, THEN WHAT? Upon closing the sale of the relinquished property, your client must adhere to two timetables which both begin on the date the existing property is transferred. First, they must identify in writing possible replacement properties within 45 days of the closing...