San Diego commercial brokers

If you are looking for investing in commercial properties, there is no better place than in the San Diego Area. Contact a San Diego commercial brokers who can guide you toward more profits taking advantage of the 1031 exchange.

The 1031 Exchange code gets its name from the Internal Revenue Code Section # 1.103) is a code that can end up saving individuals money on certain business and investment property transactions. ‘Profit or Capital Gain’ taxes must be paid on personal property and real estate if any profits were made. There might be an exception, however.

The 1031 Exchange allows sellers of personal property and some real estate to be exempt from paying the ‘capital gains’ taxes if they are “exchanging” the property they sell, for a new property of “like-kind”. Keep in mind that this code only applies to investment property and business property.

A fine example would be selling a property which had been used as an office, and then buying a similar property to be used for the same purpose.If there are profits, they may or may not be taxed. The new property does not have to be the same size or type, as long as it is going to be used for the same purpose as the one sold.Similarly, a property can be purchased for investment purposes can be sold to buy a different property for investment purposes, without taxing the profit. The broad definition of exchanging for a “like-kind” property allows for much flexibility.

There are many time factors to be considered. The purchase of the new property must take place within 180 days of the sale of the original property.Many buyers can find it more efficient to make the sale and purchase as close in time as possible. The 1031 code requires a qualified intermediary after 45 days of the sale to ensure that the gains are used against the purchase of the new property. Sometimes this will prevent many people from using the profit for their financial gain.