If you are selling Highlands real estate you may ask yourself, does an exchange make sense? A 1031 exchange kicks the can down the road as far as taxes go and this can be a great move for many sellers. How much do you know about real estate exchanges? Knowing the rules can help you decipher what you would like to do with the sale of your Highlands property.
A 1031 exchange involves selling one home and immediately purchasing another of equal or greater value. This enables the profit from the sale of your home to be rolled into a similar property, avoiding capital gains tax along the way. This cannot be completed on a primary residence but can be completed on a vacation home if the home is rented out more or less full time. The idea behind it is an exchange of like properties.
If you are selling your Highlands home and want to consider a 1031 exchange you should take the time to speak with an attorney and learn as much as possible about the process, it can certainly make sense for the right scenario.
Contact me, Lynn Kimball, today to learn more about Highlands real estate. I welcome the opportunity to update you on current market conditions. I know Highlands NC and I know Highlands real estate.
Click here to read “An Exchange Will Defer All Of Your Tax Obligations” from Realty Times.