Portland Homeowners Turn To Stonebridge Mortgage Group For All Mortgage Matters
Owning a home is a huge investment, and tax season can make those matters seem all the more complicated. If you’re a landlord who owns investment properties, this is even truer. Stonebridge Mortgage Group is eager to help Portland locals understand the intricacies of owning homes and investment properties and the tax responsibilities that come with that.
Selling An Investment Property
If you’re looking to sell an investment property that you’ve had for a while, the taxes that you’ll pay after the property depreciation may leave you with less profit than you were expecting after the sale. How much an investment property owner in Portland might be taxed for the sale of their investment property will depend on many factors, such as how much the property’s worth has depreciated, how much they originally paid for the property, and how much they sell the property for.
How A 1031 May Help You Defer Taxes After An Investment Property Sale
Portland investment property owners need not necessarily resign themselves to paying a steep tax price when they sell their investment property. However, if you plan to take on another investment property, you will want to consider filing a 1031 Exchange.
What Is A 1031 Exchange?
The 1031 tax-deferred exchange takes its name from Section 1031 of the Internal Revenue Code. This tax-deferred exchange can allow Portland locals to sell an investment property and replace it with a “like-kind” property while deferring capital gains taxes to a later date.
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What Counts As A Like-Kind Property?
According to the Income Revenue Code 1031(a), a like-kind property is a property that has been held for productive use in a business, trade, or as an investment. Thus, like-kind properties are similar in nature or character, regardless of any possible differences in grade or quality for the properties.
What You Need To Know About 1031 Qualifications And Rules
The IRS has strict rules for filing a 1031 tax-deferred exchange. Portland property owners who want to file a 1031 tax-deferred exchange should expect to meet strict qualifiers. Portland locals cannot use the 1031 tax-deferred exchange for personal residences, vacation/second homes, or “flipped” houses. Portland locals should also make sure that they set up the 1031 exchange before the sale. After the closing sale of the initial investment property, Portland locals will have no more than 45 days to find and designate replacement property. Additionally, Portland locals would have to close on the new property no later than 180 days following the closing or settlement of the property that was sold. The new property must also be bought for at least the same amount as the property that was sold.
Allow Stonebridge Mortgage Group To Help You With Your 1031 Tax Deferred Exchange
Portland locals, if you’d like to learn more about if a 1031 tax-deferred exchange could help you, visit Stonebridge Mortgage Group. We give advice on all mortgage matters. We can help you better understand the intricacies of 1031 tax-deferred exchanges and if your property would qualify for such an exchange. Stonebridge Mortgage Group is dedicated to helping all homeowners and investment property owners in the Portland area. Don’t wait! Visit soon to get the mortgage-related services and professional advice you need with Stonebridge Mortgage Group.
Stonebridge Mortgage Group Offers Guidance On All Mortgage Matters
For professional assistance with mortgages and related services, look no further than Stonebridge Mortgage Group. You can rely on Stonebridge Mortgage Group to help guide you through the home buying process. We help get you pre-approved for a mortgage and help with your real estate loans and other mortgage solutions, both residential and commercial. Stonebridge Mortgage Group serves the greater Portland area and is located in Gresham, Oregon. Don’t wait to get quality assistance with buying your home! Call Stonebridge Mortgage Group today at 503-661-5580.