People commonly believe that they cannot exchange from improved property to unimproved property or from a rental house to an apartment building, when in fact they can
Rochelle Stone is the founder & CEO of Starker Services, Inc., the oldest and largest independently owned 1031 tax deferred exchange company in the country.
Rochelle is a former commercial agent specializing in multifamily and commercial investment property sales. She is an accredited real estate instructor in exchanging and investment techniques and the author of Real Estate Exchanges: Using the Tax Deferred Exchange in Real Estate Management.
Rochelle has been an active investor in commercial and multifamily real estate. She is a nationally recognized author and speaker on the subjects of investment real estate and tax deferred exchanges.
In her real estate interview at Real Estate CyberSpace Radio she discusses the following real estate information:
Definition of an Exchange
An exchange is a non-taxable sale; the gain from the investment property sold is rolled into a new investment property so that no taxes are paid on the transaction.
A two-family house in which the seller lives in half and rents half is an investment property; the client could have a taxable gain, but that gain might be protected for the client by arranging a 1031 exchange.
There are companies that will help with such a rollover transaction; the gain might be deferred on the entire transaction if the seller meets the residential rules on the half he lives in and the investment rules on the other half.
In this briefing she also covers the following useful real estate topics:
Why Residential Agents Need to Know About Exchanges
