Tony L. Smith, PA (Broker Associate) Home Buyer’s Agent (ABR®) - Representing Homebuyers in the Greater Fort Lauderdale and Palm Beach areas
Tony L. Smith, PA
954-282-1814954-282-1814

Florida 1031 Real Estate Exchange

Florida 1031 Real Estate Exchange

 1031 Exchanges for South Florida property owners requires the skills of a Realtor® who understands IRS implications.  Tony L. Smith, PA (Realtor)+LCAM  understands how to implement a 1031 Exchange for your property holdings.  How does a 1031 real estate change to owning property in Broward and Palm Beach Counties?   Under Internal Revenue Code (IRC) Section 1031, a real property owner can sell subject property and then reinvest the proceeds in ownership of a like-kind property, and defer the capital gains taxes.  This is a fantastic opportunity for South Florida property owners to qualify a like-kind exchange, property exchanges, and must be done in accordance with the rules set forth in the tax code and in the treasury regulations.  The 1031 Exchange can offer significant tax advantages to real estate buyers. Often overlooked, a 1031 Exchange is considered one of the best-kept secrets in the Internal Revenue Code.

IRC §1031 Tax Deferred Exchanges and real estate investment property services:

  • Intent – Rental income
    • Net Selling Price
      • Capital Gains rolled into a like-exchanged property or greater than
        • 45 days to Identify property
        • 180 days to close on like-exchanged property
      • Intent and Length of Ownership
        • 2 years for safe harbor
      • Same Taxpayer throughout transaction
    • Contract on new property
      • Identify the Intermediary
      • HUD approval
      • Net proceeds from selling original property held in escrow
        • Record mortgage for original investment
    • Reverse 1031 Exchange
      • Property purchased in E.A.T.
      • Sell existing property
      • Proceeds applied to E.A.T.

Buying a home may be the largest and most complex financial transaction you ever undertake. If you’re ready to buy a home, wouldn’t you prefer to work with the most qualified real estate professional you can find?   Tony L. Smith, PA (Realtor)+LCAM has an Accredited Buyer’s Representative  (ABR) designation, Tony has gone through additional training, have proven experience representing buyers and that extra edge you have been looking for.   Tony is your ABR®.

(Along with consulting a Realtor, a property owner should also consult their CPA) 

  • To take a 100% deferral of the Capital Gain tax, the investor has to reinvest all the equity and debt from the sale of the property into another investment property of equal or more value
  • The property the investory sells is called the Relinquished Property
  • The property the investor buys will with the proceeds is called the Replacement Property
  • To avoid issues about the validity of handling the exchagen, a third-party also know as a Qualified Intermediary to do the necessary paperwork for both transactions, hold the proceeds in an escrow account and make such funds available for the purchase of the new property
  • Both the Relinquished and Replacement properties have to be investments or used in a trade or business.

(Along with consulting a Realtor, a property owner should also consult their CPA)

Tony L. Smith, PA (Realtor)+LCAM |Davie| Homebuyer’s Representation | Phone:954-282-1814| tonysmithflorida@yahoo.com | SKYPE:  TONYSMITHFLORIDA Representing Buyers Only,  in the Greater Fort Lauderdale area.  We Always Work For Buyers as Clients, Never as Customers!”

 Buyers Only Florida Realty | 1451 W. Cypress Street, Suite 300, Fort Lauderdale, Florida  33309 | (954)282-1814 – tonysmithflorida@yahoo.com
  • Contact Me

  • Latest Real Estate