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hawaiianrealty.com hawaiianrealty.com * hawaiianrealty.com hawaiianrealty.com. hawaiianrealty.com hawaiianrealty.com hawaiianrealty.com hawaiianrealty.com THE TIMES ARE EXCHANGING 80 HAWAI'I LIFE REAL ESTATE BROKE hawaiianrealty.com 800-667-5028 ext. 8122 The tax consequences of trading spaces can be fairly exchange. Remember, an exchange must be like-kind for Even though taxes are deferred, it is widely held that an painless if you participate in an Internal Revenue Code Section 1031 tax deferred exchange. Such exchanges allow seller to defer taxable gain on investment Refreshed Hilo Home like-kind which simply means real estate for real estate; land for house, house for condo, etc. etc. Julie reminded us that there are strict time limits (45 days to designate investment property may be converted to personal use after a period of investment use. Investment use for one to two years is probably fine but as Julie reminded us, the Denise S. Nakanishi RB-17031, ABR, CRS, GRI, SRS "Major Mom is a Major Difference" properties. Key to this concept is that taxes are deferred and 180 days to close related to the exchange. It is a good taxes on previous sales is still due. Death moves the tax which means, of course, that at some point, they must idea to designate multiple exchange properties. Hawai' is basis (the taxable amount) forward to the date of death. be paid. While specific rules are but a quick "Google" infamous for title and survey problems. Delays in resolving For this reason, Julie recommends that heirs consider or "Yahoo" search away, my "go to gal" is Jullie Bratton these could easily extend closing beyond the allowable selling at that time. Otherwise, future appreciation of Old Republic Exchange( jbratton@oldrepublictitle. time. Check property Sitles early. As part of previous will be fully taxed. Most exchanges are fairly straight forward but it's always advisable to consult your financial BEST Hawaii 2021 East com). During one of our COVID Wine'd Down Zoom sessions, Julie reminded us of critical steps and suggestions which aren't necessarily part of any published guidelines. Your purchase agreement is one of the first places an exchange can get into trouble. In order to comply with IRS requirements, specific language indicating both parties agree to participate must be included or the exchange could be disqualified. A simple recitation of the agreement will suffice but expanded language is required conversations, Julie reminded me that transactions with foreigners can be quirky. The IRS requires that foreigners involved in real property transactions must have a Tax ID advisor and an attorney versed in exchanges. Not all number. They should apply early. A delay could cause the are! It's good to consult an experienced accommodator process to exceed alowable timelines. Remember, key early because some sub-sets of real property (vacation to every exchange is the concept of "control of funds rentals, for instance) might be overlaid with additional The party relinquishing the funds (the seller, then buyer) considerations. Remember, builders of spec homes is not allowed to touch either proceeds of the sale (the are dealers. Such sales do not quality for tax deferred first leg) or funds being held to complete the purchase exchanges. When it comes time for your next exchange (the second leg). An Exchange Accommodator must be remember to use a REALTOR® who understands the used. Exchange accommodators are not regulated in basics especially as relates to our Hawaii market! majormom@ilhawail.net to fully protect seller especially on the buying "leg" of the Hawaii so choose your third-party intermediary carefully. Blog forward at www.hawaiianrealtyhomes.com NEW LISTING 3bd, den, 1.75ba, 1,028sf huge lanai, newer kitchen/bath wood floors Tribunal cell 936-5100 MLS #660800 $459K FIND MY COLUMN EVERY SUNDAY OF THE MONTH. Watch "HAWAII LIFE" on HGTV! hawaiianrealty.com hawaiianrealty.com hawaiianrealty.com hawaiianrealty.com * hawaiianrealty.com hawaiianrealty.com . hawaiianrealty.com hawaiianrealty.com hawaiianrealty.com hawaiianrealty.com THE TIMES ARE EXCHANGING 80 HAWAI'I LIFE REAL ESTATE BROKE hawaiianrealty.com 800-667-5028 ext . 8122 The tax consequences of trading spaces can be fairly exchange . Remember , an exchange must be like - kind for Even though taxes are deferred , it is widely held that an painless if you participate in an Internal Revenue Code Section 1031 tax deferred exchange . Such exchanges allow seller to defer taxable gain on investment Refreshed Hilo Home like - kind which simply means real estate for real estate ; land for house , house for condo , etc. etc. Julie reminded us that there are strict time limits ( 45 days to designate investment property may be converted to personal use after a period of investment use . Investment use for one to two years is probably fine but as Julie reminded us , the Denise S. Nakanishi RB - 17031 , ABR , CRS , GRI , SRS " Major Mom is a Major Difference " properties . Key to this concept is that taxes are deferred and 180 days to close related to the exchange . It is a good taxes on previous sales is still due . Death moves the tax which means , of course , that at some point , they must idea to designate multiple exchange properties . Hawai ' is basis ( the taxable amount ) forward to the date of death . be paid . While specific rules are but a quick " Google " infamous for title and survey problems . Delays in resolving For this reason , Julie recommends that heirs consider or " Yahoo " search away , my " go to gal " is Jullie Bratton these could easily extend closing beyond the allowable selling at that time . Otherwise , future appreciation of Old Republic Exchange ( jbratton @ oldrepublictitle . time . Check property Sitles early . As part of previous will be fully taxed . Most exchanges are fairly straight forward but it's always advisable to consult your financial BEST Hawaii 2021 East com ) . During one of our COVID Wine'd Down Zoom sessions , Julie reminded us of critical steps and suggestions which aren't necessarily part of any published guidelines . Your purchase agreement is one of the first places an exchange can get into trouble . In order to comply with IRS requirements , specific language indicating both parties agree to participate must be included or the exchange could be disqualified . A simple recitation of the agreement will suffice but expanded language is required conversations , Julie reminded me that transactions with foreigners can be quirky . The IRS requires that foreigners involved in real property transactions must have a Tax ID advisor and an attorney versed in exchanges . Not all number . They should apply early . A delay could cause the are ! It's good to consult an experienced accommodator process to exceed alowable timelines . Remember , key early because some sub - sets of real property ( vacation to every exchange is the concept of " control of funds rentals , for instance ) might be overlaid with additional The party relinquishing the funds ( the seller , then buyer ) considerations . Remember , builders of spec homes is not allowed to touch either proceeds of the sale ( the are dealers . Such sales do not quality for tax deferred first leg ) or funds being held to complete the purchase exchanges . When it comes time for your next exchange ( the second leg ) . An Exchange Accommodator must be remember to use a REALTOR® who understands the used . Exchange accommodators are not regulated in basics especially as relates to our Hawaii market ! majormom@ilhawail.net to fully protect seller especially on the buying " leg " of the Hawaii so choose your third - party intermediary carefully . Blog forward at www.hawaiianrealtyhomes.com NEW LISTING 3bd , den , 1.75ba , 1,028sf huge lanai , newer kitchen / bath wood floors Tribunal cell 936-5100 MLS # 660800 $ 459K FIND MY COLUMN EVERY SUNDAY OF THE MONTH . Watch " HAWAII LIFE " on HGTV ! hawaiianrealty.com hawaiianrealty.com