Clearwater Beach Real Estate Investors Can Benefit from 1031 Exchanges in Florida
Clearwater Beach Florida – The 1031 exchange is a useful way for Clearwater Beach real estate investors looking to sell a condo in Clearwater Beach to avoid capital gains tax while still increasing their wealth with smart investments. We put together a quick list of 9 things home sellers must know before doing a 1031 exchange on their second home or investment.
- If you’re curious What’s a 1031 exchange you may want to check out this article first > Clearwater Beach Real Estate – What is a 1031 Exchange?
However, the practice is filled with potential pitfalls that can cause inexperienced investors or Realtors® to fail to meet its exacting conditions, resulting in the real estate investor being taxed on their capital gains.
Working with a top Clearwater Beach real estate agent experienced with 1031 tax deferred exchanges in Florida when when buying or selling a property in Clearwater Beach by with navigating past the pitfalls, but it is important to note that a 1031 exchange is best conducted with a team of experts at each step of the process. We can introduce you to all the local specialists you’ll need.
9 Important Facts About Doing A 1031 exchange Florida Seller’s Need to Know:
- The restrictions when investors wanted to sell a condo in Clearwater Beach and do a Florida 1031 tax deferred exchange used to be much more strict. For example, one building like a duplex had to be exchanged for another duplex that was much the same, whereas one duplex for example can now be exchanged for another kind of property like a beach condo, land, apartment building, etc. in current times so long as both can be considered “like kind.”
- One of the most important consequences of the loosening of restrictions is that 1031 exchanges no longer have to be simultaneous, meaning that investors can now use intermediaries.
- To sum up the process, investors entrust their properties to the intermediaries, who then proceeds to sell the property and holds on to the cash for their clients. This is important because the real estate investors cannot collect the cash from selling their property without incurring the IRS capital gains tax.
- Once the assets have been sold, the investors have limited time with which to identify the replacement assets, which the intermediaries will purchase using the proceeds of the sale.
- Once someone has closed on the property sale entrusted to the intermediaries, the investors have 45 days in which to identify new assets with which to replace said assets. In practice, this means that investors in the real world often have more than 45 days with which to identity suitable replacements, since the timer does not start running until the closing period has concluded.
- Standard practice is for the investors to provide the intermediaries with the information on not just one suitable replacement properties but up to three so they have two back-up options.
- Please note that the intermediaries have a time limit of 180 days in which to close on the like kind property sale meant to replace the original property or assets entrusted to them. This timer also begins running as soon as someone closes on the first property entrusted to them.
- Investors may not want to identify suitable replacements as soon as possible for a couple of reasons. First, waiting a little means that more may be listed for sale, thus providing the real estate investors with additional options and thus additional possibilities. Second, the investors’ power of persuasion relative to the owners of their replacements increases once their assets have been closed upon.
- Finally, “like kind” means that the assets or properties are similar in character without regard to differences in excellence. This means that office buildings can be traded for either a Clearwater Beach condo or land or apartment buildings or even shopping complexes. However, it is important to note that “like kind” assets must be either an investment or a non-inventory asset that is not being held for the purpose of resale.
Of course, these facts only give a small glimpse into what you need to know to sell a condo in Clearwater Beach and do a 1031 exchange in Florida. Ask me about issues with funding renovations and improvements which can definitely make a big difference in older beach condos on Sand Key for example. Investors without extensive experience with such practices should not hesitate to contact local 1031 Real Estate Specialists like us for skilled and experienced assistance with their 1031 especially when selling because you need to hire a Realtor® that can market your vacation home / investment property and understand to the right buyer they are buying more that just real estate.
What’s the biggest mistake we see people make in real estate? Buyers and Sellers not realizing you don’t know what you don’t know and what you don’t know can be very costly especially when it comes to 1031 tax deferred exchanges of when you sell properties in Clearwater Beach and Sand Key.
- Click link to Get our Free Guide to Profitable Painless 1031 Exchange in Florida
- If you’re thinking “I might want to sell my Clearwater Beach condo” click here >> http://www.sandbarstosunsets.com/home-value/
- If you’re thinking “I want to know more about buying a beach investment property” as part of a 1031 exchange you can search here >> http://www.sandbarstosunsets.com/home-search/
Feel free to give us a call or text at 727-710-8036 if you’d like to discuss your particular situation since each situation is unique.
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Clearwater Beach Florida – Now that you’ve sold your home or condo you’re almost ready to pack up the house and move on to the next phase. Moving can be both exciting and overwhelming, all at the same time. Let’s face it, getting your house sold is fantastic, it’s the moving part that’s liable to cause a wrinkle or two. As a Clearwater Beach home seller, I know this tug of war well, to prepare myself, I created a my Top 5 Clearwater Beach home seller tips for planning your move to share with fellow home seller’s. (If you’re at the thinking of selling your home or condo phase you may want to check out these tips on getting prepared here > 5 Tips for Selling A Condo in Clearwater Beach to Get Top Dollar )
#1 – First Things First
The first thing that can be easily overlooked, is the need to transfer all of your existing records to reflect your new address. This used to require a trip to the post office, but guess what, the USPS now allows you to conveniently change your address online. Thankfully, you can also change you license online through Florida’s DMV website, while your at it, don’t forget to update your utility and credit card accounts. Be sure to make these changes up to two weeks in advance, trust me, as your friendly Clearwater Beach home seller, once your all moved in, you won’t think twice about an address change, because you’ll be too busy unpacking.
#2 – Next Batter Up
It’s easy to wait until the last minute to book a moving truck or service, as a Clearwater Beach home seller, please resist the urge to wait until the very last moment. Before you even book a service, do your due diligence; check all of the available online resources, and read all of the reviews that you can find. Waiting until the last minute can mean the difference between keeping your items whole and opening boxes of broken items days or even weeks after you have already moved. Many of our clients moving locally and even some who’ve moved across the United states have really liked using a POD. Once you have found the moving service that meets your criteria, contact the service to discuss your needs. If on the other hand you plan on handling the move yourself, be sure to round up your family and friends for help well in advance. Even the best of friends need advance notice and motivation.
#3 Sorting and Packing
It’s important as a home seller to begin your packing adventure early; this will make unpacking a great deal easier once you have relocated to your new Clearwater Beach home. Below you will find an easy and reliable breakdown:
- Pack out-of-season clothing, shoes and items first, you won’t be using these items any time soon and they won’t be needed or missed for the time being.
- Begin wrapping the kitchen appliances that you use least.
- Use ziplock bags for important papers and smaller items.
- Carefully pack the bulk of your dishes, cups and silverware, if not all, paper or plastic plates and cups are great for this in between time.
- Use Plastic Containers or Bins for your “go-to” items, those belongings that you need easy access too. This includes toiletries, in-season clothing, shoes and other items.
- You will need three to four large boxes for each room, depending on the size of the room. Go ahead and start packing up the rest of the rooms, be sure to color code and identify the contents of each box by room name and/or family member’s name.
# 4 – It’s So Hard To Say Goodbye
In those last few days, leading up to the actual move, there are a few things that a home seller can do to make the transition a whole lot easier:
- Confirm your move with the moving service or family and friends.
- Confirm that your address has been successfully changed.
- Pack overnight bags for each family member, this will ensure that you have a change of clothes and all of the necessary items each person will need to get through the first day or night. This will allow you all to take a break and rest up, without having to dig through bins and boxes for the essentials.
#5 – Last But Not Least
Three important items that you will need to do, and that will make you life so much easier are:
- Head over to your new place and give it a nice, deep clean in preparation for your move. There will be tons of work ahead and you’ll appreciate the time that you took to ready your new home for your families arrival.
- Once every last item is packed, be sure to leave your sold home in the condition that you found it in. Leave the house freshly mopped and swept, remember this was your home and it’s great to give it some love on the way out.
- It’s a great idea, the night before you move, to pack some snacks and lunches, moving can be time consuming and it’s important to give yourself a time-out. Packing quick lunches and snacks make it easy to grab a bite on the go, and stay replenished and energized for the work ahead.
Congratulations fellow Clearwater Beach home seller, I encourage you to follow some of these tips to help you get started on planning your move. Best of luck and well wishes!
Remember, When you are ready to sell your Clearwater beach condo or home, contact Top Clearwater Beach Real Estate agents, Jack and Cyndee Haydon at 727-710-8036.
Are you asking yourself , “What’s my Clearwater Beach home value today? Click here for latest Clearwater Beach Property Values
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Experienced Clearwater Beach Florida 1031 Exchange Real Estate Agents
Hi, we are Cyndee and Jack Haydon, Realtors® in Clearwater Beach Florida who have been specializing in helping real estate buyers and sellers in our beach communities full-time for over 10 years. You can feel comfortable knowing we are experienced in also helping buyers and sellers take advantage of the IRS tax code that allows 1031 Tax Deferred Exchanges and defer paying capital gains when moving from one like property to another. I’m not going to tell you to trust what we say, because you don’t know us yet, however, we do invite you to hear directly from our real estate clients, Yael and Brian, because like you, we were able to help them achieve their Clearwater Beach real estate investment goals quickly and painlessly when they sold their home in California and decided to buy a Sand Key Condo utilizing a 1031 exchange. Also here’s what they had to say about their experience on Yelp.
- Click link to Get our Free Guide to Profitable Painless 1031 Exchange Florida
If you’re a 1031 Exchange Buyer in the Clearwater Beach FL area
So you’re thinking of buying property here utilizing a 1031 exchange, well I’m not going to tell you working with a Realtor® experienced in 1031 exchanges along with team of professionals that understand the strict time guidelines you will be working under is important because you already know that. What you may or may not realize is the unique benefit of working with a Clearwater Beach real estate team that understands specifically that you need to see the all properties that best match your criteria quickly so you can identify your top 3 . These properties may vary based on your personal investment goals typically in three main areas: (1) maximizing monthly income, (2) maximizing real estate appreciation or (3) choosing wisely since this property may be your future retirement home or a combination of all of the above. You may even begin to realize the benefit that working with an experienced consultant, like me, that takes the time to ask you thought provoking questions to find out what’s really important to you is really important to us. Maybe you’ll discover that working with a consultant, like us, who knows the right questions to ask you along with the right communities and properties to show you may be more important than just picking the first person who answers the phone and just sends you all property listings in a particular price range in Clearwater Beach because knowledge and experience in this kind of real estate transaction can truly help you avoid costly mistakes and ensure you achieve your long term goals.
You can feel comfortable that you will receive all the local knowledge backed up with hard copies of detailed, in depth financial you need to make inform quick decisions. From our experience we also understand the financial hurdles you may encounter when trying to buy a property that needs renovations utilizing a 1031 exchange that the typical agent has never even run into. Knowing this is important because the result to you is that much cheaper property may ultimately represent a very costly choice for you because of how the 1031 exchange rules. If you are looking for a trusted real estate advisor to help you buy a beachfront Clearwater Beach condo utilizing the IRS tax code to allow you to defer paying capital gains like we helped Yael and Brian do -please give me a call or text me now at 727-710-8035 to schedule an initial consultation to discuss your particular situation.
If you’re a 1031 Exchange Seller in the Clearwater Beach FL area
Experience also shows you need a Realtor® that understands that you are often selling more than pure real estate when doing a 1031 tax deferred exchange and smart sellers tend to get top dollar when working with a trusted real estate advisor that understands how to market your property to attract the right buyers who will understand, appreciate and are willing to pay top dollar for your investment. Imagine how it feels knowing you will have a team working for you with both the client experience and the real estate expertise based on in-depth education and earned certifications to present comprehensive financial projections, strategies and details to market your beach condo effectively in todays real estate market. As a Clearwater Beach condo seller ,you benefit because we are “life learners” and full time professionals and also a licensed real estate Broker and one of less than 1 % of the local Realtors® to have earned the Seller Representative Specialist (SRS) designation offering you all the advantage you deserve when selling.
Jack and I have spent 35 years combined at IBM as Information Technology and Business consultants helping our clients make multimillion dollar investments and strategic business decisions to achieve their goals. We now bring the same commitment to offering the expertise and honed skills of understanding the big picture along with being detailed enough to get to the micro detail level while be judged by getting results while delivering an exceptional client experience. This past decade we have dedicated ourselves to our passion of helping buyers and sellers along our 26 miles of beaches of Tampa Bay. I imagine you’d like to benefit from the skills and knowledge a certified Resort and Second Home Specialist (RSPS) that’s proven they understand the needs of both the buyers and the sellers of vacation and resort homes especially when some portion of it is an investment. That’s what we do for our clients, we are your consultant throughout this process and after as well and frankly it’s the service and support long after the sale that our clients tell us comes to mean the most to them. If this sounds like the kinds of caring, committed, experienced trustworthy team you’d like working for you then give us a call or text us at 727-710-8036.
Our purpose is for our clients to be so outrageously happy with the level of service and results we deliver that they gladly introduce to those they care about most. Our results speak for themselves when approximately 100 of the people, like you, that we’ve helped are willing to share their experience on video to help you make a better, more informed decision of this magnitude here: http://www.sandbarstosunsets.com/clients
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Clearwater Beach Real Estate – What is a 1031 Exchange?
What is a 1031 Tax Deferred Exchange?
Clearwater Beach Florida – In simplest terms, a 1031 exchange lets the owner of an property exchange it for another property of a similar nature without being charged capital gains tax in the process:
For example: Suppose someone purchases a Clearwater Beach condo as an investment for $300,000 and then sells it for $400,000 at a later time.Under normal circumstances, the $100,000 difference is taxed as capital gains, which is the profit earned on the sale of non-inventory assets. However, should that same owner decide to sell their Clearwater Beach Condo for $300,000, in the IRS’s eye’s they actually “swap it” for a like kind condo for say $500,000 in Clearwater Beach Florida or anywhere else for that matter using a 1031 exchange,then the capital gains tax can be deferred until a later time.
For obvious reasons, benefiting from a 1031 exchange is a topic of considerable interest to investors in Clearwater Beach real estate.
What Are the Requirements and Risks of Using a 1031 Tax Deferred Exchange?
There are numerous rules that have to be followed for a Clearwater Beach real estate investor to benefit from a 1301 exchange. In this as in most related matters, compliance is of the utmost importance because failure can result in serious consequences.
For starters, an property used in a 1301 exchange must either be an investment or have some kind of productive use in a business. Please note that these criteria exclude the swapping of inventories, which are held for the purpose of resale. For example, an investor can swap a condo in Clearwater Beach being rented out to tenants but not a beach condo purchased for fix and flip because one is being used to earn revenue while the other is being held for resale – make sense?
Furthermore, any property used in a 1031 exchange has to be swapped for another property of a similar nature. For example, a building (ex. condo, apartment building, rental home, etc.) can be swapped for either land or a building used for an unrelated purpose, but not for partial ownership of businesses. Please note that the exact limits can be confusing, meaning that interested Clearwater Beach real estate inventors should consult specialists before entering into their 1031 exchanges. We can certainly recommend local experts to assist you.
Finally, there is are time limits imposed on a 1031 exchange when it is being performed through intermediaries. First, the owner has 45 days to designate an asset or assets with which to replace the asset being swapped. Second, the owner has the earlier of either 180 days or the due date of his or her tax return with which to close on the designated asset or assets. It is important to note that the timers for both time limits begin running as soon as the asset to be swapped has been sold through the intermediaries.
Failing to meet these conditions means that the owner will be charged capital gains tax. Further unpleasant consequences can also occur depending on the exact circumstances of the 1301 exchange.
Finding Experienced Real Estate Agent Advisor in Clearwater Beach when doing a 1031 Tax Deferred Exchange
A 1031 exchange is both complicated and filled with pitfalls, meaning that interested investors should have experts assisting them throughout the process for the best results. That team of experts should included experienced CPA’s, Intermediaries, lawyers and real estate advisors. As a certified Resort and Second Home Property specialist, Certified International Property Specialist, Certified Seller Representation Specialist and Certified Luxury Home Marketing Specialist I have invested in the training and expertise to guide our Clearwater Beach 1031 clients smoothly and successfully through this process. Since every “i” must be dotted and every “t” must be crossed and decisions must be made relatively quickly knowing the 26 miles of beach properties and what the expected income potential on various properties is have been very helpful to our clients success.
If you would like to discuss doing a 1031 exchange in the Clearwater Beach, Tampa Bay area we offer a complimentary consultation to see if we can help you achieve your Clearwater Beach Real Estate investment goals. Call the Sandbars To Sunsets Team at 727-710-8036 and Cyndee & Jack Haydon, Realtors® in Clearwater Beach Florida for more information, especially if it’s your first 1031 exchange sale.
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Are you considering putting your Clearwater Beach condo on the market? If so, you will likely want to get top dollar for your property. Here are 5 Tips for Selling a condo in Clearwater Beach Florida and get top dollar in today’s real estate market. Selling a Clearwater Beach condo is something that you can easily do, of course, as this is a top area for beach real estate. Getting top dollar for this condo, however, may take a bit of work. Here are some suggestions of things you can do to get the most out of your Clearwater Beach condo:
Tip 1: Update the Interior
One of the things that condo owners can do to raise beach condo values is to update the interior. You will be surprised by how much of a difference a quick coat of paint or an updated bathroom can make when it comes to getting top dollar for your condo. Keep in mind, however, when making these changes that you want to remain conservative with your changes. Though a loud color of paint might seem like a great idea to you, not all potential buyers will like this. It is best to stick with neutral colors and allow the new buy to choose the decor color themselves.
Tip 2: Brighten It Up
Another very easy addition that you can make in your Clearwater Beach condo in order to make top dollar is to brighten it up with new lighting fixtures. Again, you want to err on the side of caution when it comes to adding new lighting and stick to the conservative side, but make sure your home is bright. The best place to add new lighting, if you can only add in certain areas, is the kitchen or the entrance area. Lighting will help a small kitchen look larger and will make a great first impression in the entrance area of your condo.
Tip 3: Go as Green as You Can Reasonably Go
It is also possible to raise beach condo values by bringing in environmentally-friendly changes. Something as simple as installing a water saving shower nozzle or upgrading your appliances to energy efficient models will be a great way to lure potential buyers. The nice thing is, you don’t have to make a huge investment into your home when you do this as many home improvement items on the market already have energy-efficient features built into them.
Tip 4: Clean Out Clutter
Even if you believe your clutter looks neat and tidy, any clutter in your condo can make it appear unkept. When you choose to clean out the clutter from your home, however, not only will you be making your condo look a lot neater, you will also find that your condo appears larger as well. The larger you can make your space appear, the more money you can bring in when selling a condo in Clearwater Beach Florida.
Tip 5: Choose the Right Realtor
Finally, you will find that choosing the right realtor is also a great way to ensure that you are getting top dollar when selling a Clearwater Beach condo. A good Realtor will have other suggestions for you about how you can get more money in the sale and will also be at your side throughout the entire selling process. When you are ready to sell your beach condo, contact Jack and Cyndee Haydon at 727-710-8036.
Curious what your Clearwater Beach condo value is today? Click here for latest Clearwater Beach Condo Values
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