IRS section 1033 has been on the books since 1921, but it's not known by most people, including savvy investors.
Specifically, it deals with tax consequences when a property has been condemned or involuntarily converted, in whole or part, into cash or other property.
Key aspects to 1033 Exchanges:
- 3rd party Qualified Intermediary is not required to hold funds.
- Time frame to invest funds is 2 years, and in some situations, up to 3 years in the case of Presidentially Declared natural disasters.
- Will permit up to 80% control of corporation owning replacement property.
- 100% of equity is not required for reinvesting to complete exchange.
There are many key differences between 1031 & 1033 Exchanges, and I help buyers find replacement real estate for either. If you find yourself in this situation and don't know how to proceed, please call me. I have real estate attorneys and CPA's available while we search for the replacement property.
Questions? Please feel free to call-text-email me! 407-595-4841 or OrlandoHomesUSA@gmail.com