1031 Exchange San Diego

 

Internal Revenue Code Section 1031 is an amazing tool for real estate investors looking to build wealth in San Diego.

The 1031 Exchange is a Tax Code benefit that can be quite complex. Don’t attempt this on your own! Make sure to get help from your Accountant, a 1031 Exchange Accommodator, and me, your Realtor. The 1031 Exchange allows investors to defer paying taxes on the profit from selling a property, as long as they reinvest in a new property of equal or greater value. This benefit is specifically for investors (landlords), not individual homeowners.

Quick Contact: [email protected], Digital Business Card or call 858-330-1242 (Feel free to call me. Let’s talk about San Diego Real Estate.)

1031 Exchange Tip's

A 1031 Exchange in San Diego is a great option for any business or investment. However, I’m not a lawyer and don’t provide tax or legal advice. After consulting with your Accountant and finding a 1031 Exchange Accommodator, you’ll need a good Realtor. I understand the timeline of the 1031 Exchange process in San Diego and can be a valuable assistant to your team.

I have assembled a short list of Tips for you.

Expert Tip #1: Make sure to include the right 1031 Exchange language in the Purchase and Sale Agreement or as an addendum. This includes adding CAR-Form BXZ vs CAR-Form COP. I believe Form BXZ is Tailor-made for Buyers during a 1031 Exchange. COP is a little more difficult due to the time constraints. 

Expert Tip #2 on Opening a 1031 Exchange account before the escrow closes. Sooner, the Better. 

Expert Tip #3 Start looking for replacement property as soon as possible. You are on a strict deadline to identify and secure a replacement property, so the sooner we start searching, the better.

Expert Tip#4  If a suitable property or property is not identified, the default of a DTS should be considered. The best part of a DTS is that you can exit it and buy another like or exchange property when the timing is right. (Vs paying the Tax.) If you don’t know what a DTS is, then you need to call me. Mike Frey Realtor 858-330-1242

Expert Tip #5: Consider using Adam Nishikawa as your Exchange Accommodation in San Diego. I have met Adam, and he is an honest, intelligent individual who knows the 1031 Exchange rules. 

1031 Exchange Accommodator.

A 1031 exchange accommodator, also known as a qualified intermediary, is a professional who assists real estate investors in executing a 1031 exchange. First, they handle the sale proceeds from the property being sold. Next, they use these funds to buy the new property on behalf of the investor. This process is essential because it ensures the transaction complies with the strict rules required to defer capital gains taxes under Section 1031 of the Internal Revenue Code. Without an experienced accommodator, investors might struggle to successfully complete these tax-advantaged exchanges.

If you’re considering a 1031 exchange, you should talk to Adam Nishikawa, Vice President with Asset Exchange Company. He is experienced, local to San Diego, and can provide valuable assistance with the process.

Working with Adam and myself could be an excellent idea for you to build your wealth.

Adam Niskiwawa in San Diego

Some Key Rules:

  • Investment Property Only. (or becomes an investment property due to renting it out after a year and a day. No Flip’s)
  • Work with a 1031 Exchange Company (Like Adam) and get your dates. 
  • Tell your Realtor ASAP. So they can find your properties to declare.  
  • Pick Three Candidates. But make sure the combined sum of all three purchases cannot be more than 200% of your original property’s selling price. (200% rule, no good, some gains will need to be declared.) 
  • 45 days to identify properties, all within 180 Days from the close of the original sale day. (Hard Deadline) 
  • Money cannot go to your account. A Qualified Intermediary to hold the $.
  • he Title Name Must be the SAME.  From the Property Name to the 1031 Exchange Name. Talk to an Expert about 
  • You cannot sell a lesser-value property and pocket some cash. 

Adam Nishikawa is a VP at Asset Exchange Company here in San Diego. 

  • Adam’s can be reached at 619-550-6776

Construction Exchange.

They can do it, but timing is an issue. Make sure to talk to Adam if you have questions. 

Adam Nishikawa is a VP at Asset Exchange Company here in San Diego. 

  • Adam’s number is 619-550-6776

Reverse Exchange.

 Acquire the property first, then 180 days to sell the original property. It’s not simple; you cannot own both properties at the same time. 

  • Asset Exchange will Triple Net lease. And stay on title until the sells.

Lenders don’t like to lend on these, so All Cash purchases may be the way to go. 

Adam Nishikawa is a VP at Asset Exchange Company here in San Diego. 

  • Call Adam’s – 619-550-6776
Did You Know?

Did you know? You can buy a Brand new house in San Diego? check out my page. 

Looking for Existing Properties? Check out my Real Scout search page. I think it is the best in San Diego for a home search.  

Moving Services. This link may help make a move easy if needed. 

Quick Contact: [email protected] or call 858-330-1242 (Feel free to call me. Let’s talk about real estate.)

Digital Business Card.

  • Make sure to consult with your CPA, legal team, and anyone else who can help guide your decisions. As a Realtor, I follow the instructions from you, my client, and the accommodator. I do not offer legal or tax advice as I am not licensed or qualified to do so. My expertise is solely in buying and selling real estate in California..

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