Honolulu (KHON2) – Kay Mukaigawa of Engel and Volkers talks Reverse 1031 Exchange for Hawaii residents and homeowners.
According to President and Principal Broker of Engel & Volkers, Kay Mukaigawa, a regular 1031 exchange allows residents to sell investment property first before rolling proceeds into other investment properties.
“A reverse 1031 exchange allows you to purchase the new property first, which gives you more time to sell the property you already own,” says Kay Mukaigawa, President and Principal Broker of Engel & Volkers.
According to Mukaigawa, Hawaii residents must identify replacement property within 45-days of selling.
Mukaigawa says, “My client Gina saw a home near her son in Palolo and wanted to buy it. Gina calls me and we discuss selling her investment rental in Waipio Gentry, and doing a 1031 exchange.”
With the reverse 1031 exchange, Hawaii residents get to choose what to buy before rolling over the deferred gain from a rental.
“In the case of Gina, she was able to buy that home near her son, she was able to defer all her taxable gain in her Mililani rental, and roll it over into the Palolo home. And in the future, she may decide to move into the Palolo home and then re- declare that investment as her primary residence. Which is a whole new set of tax savings,” says Mukaigawa.
To learn more about Engel and Volkers and other advice given by Mukaigawa, Hawaii residents are encouraged to reach out via their official website.
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