1031’s have long been a real estate investor’s friend. For those of you who are unfamiliar with them, it is a section of the IRS tax code that allows a person to sell an investment property and purchase another – tax free.
1031’s of course are simple in theory but have a few stipulations by the IRS. If you are considering buying a mountain property and want to do a 1031, we would be happy to guide you through the process.
Here’s the basics behind the new rule: a person who owns a vacation or second home for at least 24 months, uses it for 14 or less days a year, or less than 10% of the time it was rented in any of those years, can qualify that dwelling unit for a tax-deferred Exchange. You don’t have to rent it out for an extended length of time, it could be rented for just 14 days a year and still can qualify.
Want more help? Contact us! John and Jessica – The POLTROCK TEAM at RE/MAX Mountain Properties – www.MyMurphy.com – JohnPoltrock@gmail.com – Call Toll Free (877) 837-3002 and demand the POLTROCK TEAM! for Homes, Land, and other types of real estate in Western North Carolina