Hey Everybody! I hope this post finds you doing well and getting ready for your tomorrow. This is Phil Series, Video #2. Phil Atwan from Exchange Resources is truly just an amazing presence and a great resource to have on any investment team. I would strongly urge you to contact him if you are thinking of purchasing an investment property (a property that you own and will or already rent) or are re-evaluating your portfolio. Let him know that you watched our videos!
What property qualifies for a 1031 Exchange? The answer is; not your primary residence, not a second home where your kid is living in or a vacation home. It has to be either a rented property or to a property that will appreciate or increase in value. You are using it for a business. Does a Duplex qualify? The example that Phil speaks about is that you live in the front unit – well lets back it up – a Duplex is a multiple (usually 2) units in one building.
Does a Duplex qualify? The example that Phil speaks about is that you live in the front unit – well lets back it up – a Duplex is a multiple (usual 2) units in one building. Meaning they have separate entrances but are connected by a common wall (or walls) and surrounding property. Usually, the “unit” has a full kitchen, bathroom, living area and bedroom(s). So, if you have a Duplex, and you live in one of the units and the other you rent out. You can sell the property and do the exchange on the unit you rent out.
“Like Kind” – The government says that you have to purchase like kind. Selling a duplex to buy vacant land. It is investment real estate to investment real estate. Which opens up different properties in different cities, counties, and states.
Where can properties be exchanged to? Anywhere in the country. If you purchased a property here in California and decided to move to another state for any reason, the government when using a 1031 Exchange allows you to purchase an investment property that is closer to you without paying Capital Gains Tax to sell.
Keep in mind, the information on this video, just like in video #1 is basically to provide very basic information. As the videos progress we got more into different aspects of a 1031 Exchange but if you do want more information or have a question, please let us know. You can contact Phil at 213-479-8800 or PhilAtwan@gmail.com. If you would like to contact me you can call or text 626-261-9093 or Christyna@ChristynaButcher.com