A 1031 Exchange Could Be The Answer
One of the most common real estate investment transactions is the 1031 Exchange. Simply put, a 1031 Exchange (also called a “like-kind” exchange) is the swap of one investment asset for another which defers capital gains taxes on profits.
A like-kind asset refers to selling one class of investment for a similar type of asset. For example, an investor currently holds several multi-family properties, such as duplexes, and wishes to sell them all in order to purchase a larger multi-family property, such as an apartment complex. This would qualify as a like-kind exchange.
There are specific IRS rules which must be carefully adhered to in order to qualify for the deferred capital gains tax. The sale must take place through an intermediary. Title companies are one such option and when coupled with the use of a real estate agent, the easiest. The new asset must also be identified within 45 days of the sale of the current asset and the sale must conclude within 180 days. Finally, the asset must be held for over 1 year before it is eligible for use in a 1031 exchange.
Serious investors use the 1031 exchange to buy and sell assets as new opportunities present themselves, while shielding themselves from immediate capital gains liability.
If you are ready to put your home on the market, you already know that how it looks can make a significant difference in the sales price. If you are on a budget and don’t want to hire a professional stager, there are still some changes you can make which will create a big impact.
• Declutter; pack up extra “everything.” Remove anything you don’t absolutely need from every room, closet and cupboard. A cluttered closet looks small and uninviting.
• Replace curtains, bedding and towels with light neutral colors to make the room look larger and bright • Paint a room or two with modern colors
• Store furniture to make the room look larger
• Stage the kitchen with wine and fruit. Skip the fake table setting and create an image of an intimate meal with a nice bottle of wine. The key to staging is to edit, edit, edit. A small investment in a few storage tubs filled with books, clothes, pictures and anything unnecessary will go a long way and very inexpensive.
There are many ways to add value to your home, but most ideas end up being major projects that are too expensive and time-consuming. Finding easy projects to add value to your home will provide you with a new look and feel as well as more equity in your home. Read on to see a few simple ideas you can do that are affordable and well worth your time and effort.
Painting Outdated Kitchen Cabinets
One option is to pain outdated cabinets. A complete kitchen cabinet redo can be expensive and time-consuming. Painting cabinets can take a few days, but the result is just as stunning. Outdated cabinets will have a completely new look once painted a fresh white or gray color.
Adding a Cool Feature
A new feature in the home always adds value, especially if you choose something that is on trend. A barn door is a perfect way to add a cool new touch to the home. Go with a traditional option found at your local hardware store, or shop for a door at a vintage store for that true farmhouse feel.
Replacing Old Counters
Another idea is to replace old countertops with quartz or granite. This will add value to your home and create a completely new look in the home.