How To Sell Your Business Tax Free The first in a three-part series on 1031 Exchange By Jefferson F. Riddell, Esq. Most people are aware that they can sell vacant land and rental properties via 1031 Exchange and defer payment of capital gains taxes. Fewer people are aware that, if they sell an active business–be it a manufacturing facility, store or professional practice–there is also an opportunity to take advantage of the 1031 Exchange. Simply stated, 1031 Exchange is a provision in the tax code that allows you to defer the capital gains tax on the sale of real estate […]
1031 Exchange By Jeff Riddell Although 1031 Exchange has been in the internal revenue code since 1921, the scope of its use in recent years is unprecedented. Originally an “out west” phenomenon, the use of 1031 Exchange has spread rapidly east in recent years. With all of the “unintentional millionaires” out there today, even the little guys are doing 1031 Exchanges. “Unintentional millionaires” are all those folks who bought a lot, house, condominium, etc. a few years ago who wake up one morning and find that their $250,000 property is now worth more than a million, but you knew that […]
Seller Financing By Jeff Riddell It’s hard to get a mortgage these days. So, what’s a seller (and maybe the seller’s real estate agent) to do? Seller financing (sometimes called owner financing) may do the trick. Florida recognizes several approaches, each with its pros and cons. First there is the traditional seller carry-back mortgage. The buyer and seller sign a purchase agreement that not only describes the purchase price, but also the seller financing covering a portion of the purchase price. Seller financing could, of course, cover the entire purchase price, but that usually isn’t prudent—sellers want buyers to have some […]
Wednesday, July 13, 2011
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