Bay Area Real Estate Activity by Counties for week of September 15-22 compared to last year

1031 Exchange in real-estate investments for capital gain tax deferral

What is a 1031 Exchange? A 1031 exchange is a swap of one real estate investment property for another that allows capital gains taxes to be deferred. Who should be aware about it? Folks who currently own or plan to own investment properties. But also current home owners who want to defer the capital gain taxes on their real estate property, by investing into investment properties in future. Can you do a 1031 Exchange on primary residence? 1031 Exchange deferral is for investment properties. So by definition primary residence cannot be used for a 1031 Exchange. However, you can convert your primary residence into investment property for a period of 2 years by renting out the place and then doing a 1031 Exchange on the property. If you are married, you can defer up to $500,000 in capital gain taxes by doing a 1031 Exchange. What are the requirements? You need to purchase a like-kind property. But the definition of like-kind property is pretty flexible. The new property being purchas...

Why Most Sellers Hire Real Estate Agents Today?

Selling your house without an agent as a “For Sale by Owner” (FSBO) may be something you’ve considered. But you should know that, in today’s shifting market, more homeowners are deciding that’s just not worth the risk. According to the latest data from the National Association of Realtors (NAR), the number of homeowners selling without an agent has hit an all-time low ( see graph below ): And for the small number of homeowners who do decide to sell on their own, data shows they’re still not confident they’re making a good choice. A recent survey finds three out of every four homeowners who don’t plan to use an agent have doubts about whether that’s actually the right decision . And here’s why. The market is changing – not in a bad way, just in a way that requires a smarter, more strategic approach. And having a real estate expert in your corner really pays off. Here are just two of the ways an agent's expertise makes a difference. 1. Getting the ...

Vishal Karnik

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