In this edition of Living Akamai, Kay Mukaigawa discussed the benefits of a 1031 exchange, especially when someone has made a sale and earned a large amount from their house.
“One of the options your friend could have considered is a 1031 Tax Deferred Exchange. Internal revenue code 1031 allows an investor the ability to roll over their long term capital gains from one investment to another without having to pay taxes during the year of the sale. There are important deadlines in a 1031 Exchange. A lot of Sellers have been frustrated because they haven’t been able to find their replacement property. Sellers have only 45 days to identify their replacement property and they have to close within 6 months, but the big problem is finding a suitable replacement property in this low inventory market.”
For more guidance, Engel & Volkers is happy to help. Just call 808-725-2000 or visit online at honolulu.evrealestate.com