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1031 Tax Exchange!
Las Vegas Commercial 1031 Tax Exchange!!

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Welcome to 1031Tax Exchange Page!!

Sample Savings With 1031 Exchange?

Example Scenario 1:
John decides to sell a duplex that he has owned as an investment property for 10 years originally purchased for the amount of $70,000, and is now worth $750,000. His real estate broker has recommended that he engage Company X to act as his Qualified Intermediary in a tax deferred exchange, thereby deferring payment of capital gains taxes. The real estate broker finds Tim an office building valued at $3,000,000 for his replacement property . John is successful in the exchange process and as a result does not have to pay capital gains taxes in the amount of $102,000. ($750,000 less original purchase price of $70,000 equals $680,000 profit. Capital gains tax is 15% times $680,000 equals $102,000.) He is able to purchase the office building leveraging the net proceeds from his duplex. Tim was able to purchase a property worth $408,000 more using the 1031 exchange.

	Sale	Exchange
NET EQUITY	680,000	750,000
CAPITAL GAINS TAX	102,000	0
EQUITY TO REINVEST	648,000	750,000
PROPOSED ACQUISITION*	$2,592,000	$3,000,000
*(Presuming 25% Downpayment)

Example Scenario 2:
Laura Investor owns a 10 unit apartment building, which she bought 3 years ago for $150,000. She discussed her situation with her Financial Advisor, who suggested she implement a 1031 Tax Deferred Exchange for the acquisition of a different investment property. Laura has found a Buyer to purchase her apartment building for $900,000. Instead of selling the building directly, Laura consummates a 1031 tax deferred exchange. As a result, she defers capital gains tax of $112,500 on her $750,000 profit ($900,000 less original price of $150,000 equals profit of $750,000 times 15% current federal capital gains rate equals $112,500 capital gains tax). Laura uses Company X as her Qualified Intermediary and closes on 60 acres of unimproved land at the purchase price of $3,600,000. No capital gains tax is then due as Laura has completed a valid tax deferred exchange exchanging one investment property for another. Laura was able to purchase a property worth $450,000 more using the 1031 exchange.

	Sale	Exchange
NET EQUITY	750,000	900,000
CAPITAL GAINS TAX	112,500	0
EQUITY TO REINVEST	787,500	900,000
PROPOSED ACQUISITION*	$3,150,000	$3,600,000

The Las Vegas Commercial Real Estate Team
702-440-4663 / 702-630-9777
NationWide Realty, Las Vegas.
2780 S. Jones Suite 220
Las Vegas, Nevada 89146

EMAIL: Info@Lasvegas-Commercial.com

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The information in www.lasvegas-commercial.com has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. The value of this transaction to you depends on tax, financial and legal advisors who should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

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