When real estate professional work with buyers and sellers, “agency” relationships are established. There are three kinds of agency relationships:
A 1031 Exchange is a way of structuring a sale of certain kinds of property so that the seller’s profit or gain is not currently taxed. Instead, the property that is sold is replaced with another “like kind” property. If the transaction is properly structured, the seller’s profit or gain is deferred to a future date.
For real property exchanges under Section 1031, any property that is considered "real property" under the law of the state where the property is located will be considered "like-kind" so long as both the old and the new property are held by the owner for investment, or for active use in a trade or business, or for the production of income. (Source: Wikipedia)
Section 1031 of the U.S. Internal Revenue Code allows investors to defer capital gains taxes on the exchange of like-kind properties. 1031, or tax-deferred, exchanges hold great advantages for both investors and REALTORS®.
One of the things NAR (National Association of Realtors) does is publish a “Field Guide to 1031 Exchanges” which can be found at this link. You will find that this has a great deal of information to assist you in understanding real estate and exchanges.
Prudential Montana Real Estate has is working with the First American Home Buyers Protection Corporation to provide home sellers and buyers a home warranty plan. This can give home buyers an assurance knowing that many of the home’s major systems and appliances are covered. For home sellers the benefit can be a competitive edge for a faster sale, bargaining power to sell at a higher price or after-sale protection. Please contact a Prudential Montana Real Estate agent or visit http://homewarranty.firstam.com for more information.
All information contained herein is derived from sources deemed reliable, however, is not guaranteed by Prudential Montana Real Estate, Managing Broker, Agents or Sellers. Offering is subject to error, omissions, prior sales, price change or withdrawal without notice and approval of purchase by Seller. We urge independent verification of each and every item submitted, to the satisfaction of any prospective purchaser.
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