Buying and Selling a home in the Greater Boston Area

Selling a home in MA without paying Capital Gains! Really?

Posted by Judy Conley on Tue, Apr 1, 2014

Tax 1031 Exchange, MA Real Estate, Selling a Home


Yes and it's called a 1031 tax-deferred exchange for Real Estate.

What is a 1031 Exchange? A 1031 exchange allows investors to sell property and reinvest the proceeds in another property without having to pay taxes that would otherwise be recognized gain from the sale (capital gains tax).  The payment of such capital gains tax is deferred.

(Example:  selling your 2 family income property in Arlington MA and purchasing a single family rental property in Osterville, MA)

A tax-deferred exchange is a method by which a property owner trades one or more properties for one or more replacement properties of "like-kind", while deferring the payment of federal income taxes and some state taxes on the transaction.

Sounds complicated, however Patty Flowers, Certified Exchange Specialist from Investment Property Exchange Services, Inc., will provide you with a clear and easy to understand path regarding the "ins and outs" of the 1031 Exchange. 

What are the advantages of a 1031 Exchange?

How does the 1031 Exchange help the small long term investor? (ie: 2/3 family owner)

What is "Like-Kind"?

And does a vacation home qualify for exchange? ( the most popular question)

If you're interested in finding out the answers to the above questions and how the 1031 tax exchange works.  We are planning our second 2014 complimentary 1031 tax exchange seminar with IPX Tax Exchange at our Cambridge Alewife Area office on May 15, 2014.

Note:  This is an overlooked advantage for the "average" investor that may be very beneficial when you go to sell.  However, the key is understanding how the 1031 exchange works prior to listing/selling your property and purchasing the "replacement" asset.   In most cases, once the sale has been recorded you cannot do a 1031 exchange.

for more information or to reserve a seat:

Contact:  Judy Conley, Avenue 3 Real Estate, LLC


Topics: 1031 tax-deferred exchange, MA Real Estate, selling a home in MA

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