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Questions on 1031 exchange everyone deserves answers for

Questions on 1031 exchange everyone deserves answers for

From the first day the Government has implemented the 1031 exchange strategy, many real estate investors have taken advantage of it and started to do business applying it. The greatest advantage this strategy comes with is that it allows investors to defer taxes. However, there are still many questions related to 1031 exchange options, rules and regulations, so here are the most frequently asked ones.

 

What properties qualify?

According to experts, any type of property that is being held for investment or for productive use in either business or trade qualifies for exchange for like-kind property. One of the most misunderstood aspects of the 1031 strategy is related to this term – “like-kind”. It does not refer to the form, but to the nature of the investment. This means that if you own a single-family residence for instance, you can exchange it for a duplex, or in the case of raw land, you can exchange it for an office for apartments. There are many combinations that will work.

What does not qualify then?

The 1031 exchange generally excludes certain properties that are used in business or trade or for investment and they imply bonds, stocks, interests in partnerships, securities and notes. Also, those properties that are being held “primarily for sale”, such as business inventory, do not qualify for 1031.

How should investors get started with 1031?

The first thing to start with in doing this type of business is to contact an exchange facilitator. It is recommended that before you contact the facilitator, you ensure you have all information needed related to the parties of the transaction, such as names, contact details, file numbers and so on. Expect for the facilitator to ask you questions on both the relinquished and the potential replacement properties.

Which facilitator should I select?

It is best that you go to an exchange facilitator company that has several years of experience in this industry and that knows exactly what is to be done to provide you with the desired results. Do some research on the Internet and look for facilitators in your region that meet your criteria. Opt for the one who has the best reputation.

Are there any time requirements in the 1031 exchange?

Of course they are and they must be followed accordingly, because otherwise you will fail in closing the deal. You have 45 days to find potential replacement properties from the day you close on the relinquished property. The entire period during which you have to close and acquire the replacement property is of 180 days. Keep in mind that those 45 days are included in this 180-day period (as this is one of the greatest mistakes real estate investors make when it comes to 1031 exchanges).

What are the most common restrains investors face when identifying replacement properties?

First and foremost, you must provide “unambiguous descriptions” of the replacement properties you have found and this must be done before the 45th day. It is recommended you identify a number of three potential replacement properties, just to be sure, and to have the intent of buying at least one of them.

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Things to consider before hiring catering equipment for a family event

Things to consider before hiring catering equipment for a family event

If you have a big family event coming up, and you are the one who needs to take care of all the planning, then you must be under a lot of pressure. The venue is the first thing you will have to take care of, and among the most important tasks, hiring proper catering equipment comes fist. Although, when searching for catering equipment hire south London, you will easily find a company to provide you with excellent services, you still need to think about a few aspects first. Here are the most important considerations to have when renting this type of equipment for a special event:

Think about how many people will be attending

First, you will have to think about how many guests will be at this family gathering. You need to hire equipment that will suit the amplitude of your event, so making a list of all the guests will certainly come in handy. This way you will avoid a possible inconvenience.

Research the rental company’s reputation

Finding out more details about the rental company’s reputation is another important aspect. Ask the firm to provide you with a list of their customers, and perhaps discuss with some of them to see if they have been pleased with what the company has offered them. If they are unable to provide you with any references, then it is best advised to go another way. Also, find out what type of equipment they mainly hold, and if their options are suitable for your needs in particular.

See the equipment before the event

After deciding on a company and establishing what kind of catering supplies and equipment you will mainly require, you should check the items in person before the big event. Sometimes companies may promise something that they cannot offer, and you might face an unpleasant surprise at the party, when it is already too late to look for another alternative. Discuss with the rental firm and ask to see the equipment with some time in advance.

If you want your family event to go as perfectly as planned, then it is necessary to take care of every important aspect, and that includes hiring the right catering equipment. The details mentioned above should be considered carefully, when searching for a hire company, helping you make an appropriate choice. Look online for the hire service you need, and choose an offer that suits the requirements of your event.

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