One of the most popular "tax deferring" strategies for real estate owners who are selling one property and acquiring another is the use of Section 1031 of the Internal Revenue Code. It is an effective way to defer paying income tax on capital gain generated by the sale of a property when you intend to reinvest the proceeds in a similar, "like-kind" property. Almost any kind of real property is considered "like-kind" with any other real property.

A recently enacted law closes what was considered a loophole in the Section 1031 rules. In some cases, owners of investment real estate have used the 1031 Exchange to swap their investment property for real estate that could be readily converted to an owner-occupied residential property. After the exchange, they made the property into their principal residence, lived in it for a couple of years, then sold it. Now the American Job Creation Act of 2004 has ruled that properties converted from a 1031 exchange property into a residence must be held and used as a principal residence for at least five years to qualify for the tax exemption. Otherwise, the basic tax-deferring benefits of 1031 exchanges remain the same.

Consult your tax advisor for more detailed information.

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Desiree Callender
Desiree Callender & Associates, Realtors
2905 Mitchellville Rd Suite 101
Bowie, MD 20716
Phone: 301-390-2832
Phone 2: 301-390-8244
Fax: 301-390-2584
301-390-8344
Email: DesireeCallender@NUMBER1EXPERT.com
Email: desiree@mris.com

Desiree Callender is the Broker/Owner of Desiree Callender & Associates REALTORS. She has been a full time Realtor for twenty-Five years and see's herself as a partner with consumers as they pursue their Largest investment. Her mind set of partnership has contributed to her consistent success and has placed her in the top 1% of all realtors in the nation. Desiree has also been recognized as the number one agent in Prince George's County and in her prior office. She was inducted into the Re/Max Hall Of Fame in 1997,the Prince Georges's County Association of Realtors Hall of Fame in 2003 and is a recipient of the prestigeous Re/max Lifetime Achievement award. Desiree is a hard worker and uses her Steategic marketing and Negotiation skills along with her Experience and knowledge to help her clients maximum on their largest investment. Closing over 1000 transactions and a consistent receipient of the highest annual production awards offered by her previous company (Re/Max) and the local board of Realtors, she continues to offer her clients OUTSTANDING SERVICE and RESULTS and would like to do the same for you.

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