Seri Bryant

Associate

818.212.2655

"

The quality of your thinking determines the quality of your life. "

Danny Abergel

Senior Associate

CA BRE: 01797904

818.212.2715

"

Beware of the little expenses. A small leak can sink a great ship."

Rebekah Snyder

Senior Research Analyst

818.212.2731

"

Two things define you. Your patience when you have nothing, and your attitude when you have everything."

Jesica Ocheltree

Operations Manager

818.212.2730

"

Happiness is a choice, not a result. "

Jesica Ocheltree

Operations Manager

818.212.2730

"

Happiness is a choice, not a result. "

Kathy Magallanes

Certified Agent Support Specialist

"

Success is not in what you have, but who you are."

Andrea Tuch

Marketing Manager

818.212.2660

"

The highest form of wisdom is kindness."

Hunter Stratton

Associate

CA BRE:

818.212.2730

Hunter Stratton is the newest member of the NNN team. He started his career as an award-winning sales representative and sales manager for Southern Glazer’s Wine & Spirits. Where he represented some of the most prestigious brands in the industry like Dom Perigon, Jonnie Walker, and Don Julio. Due to Covid-19 he was forced to change careers and started working in residential real estate, working directly with one of the top agents in the Coachella Valley, California. Hunter’s natural ability to build trusting relationships, his motivation to succeed, and his innate customer service skills are an asset to brokerage.

When Hunter isn’t working you can find him at the golf course, fishing, or playing with his dog Harlow.

"

You must expect great things of yourself before you can do them. "

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1031 exchange

WHAT IS A 1031 EXCHANGE?

Internal Revenue Code Section 1031 provides that no gain or loss will be recognized on the exchange of any type of business use or investment property for any other business use or investment property. 1031 Exchanges are not really exchanges in the context of two-party barter. Instead, they are typical sales and purchases that involve the same exact ingredients as any other sale or purchase, without the capital gains. The only real difference is the investor is increasing his selling and buying power by electing to avoid the drain of taxes under Section 1031 regulations. No other aspects of the transaction are affected.

WHO SHOULD CONSIDER A 1031 EXCHANGE?

Anyone who is thinking about selling a business use or investment property should consider effecting a 1031 Exchange. An Exchange offers the astute investor an opportunity to reinvest the federal capital gains that would normally be handed over to the IRS and put that money to work for himself. You work too hard to simply pay the tax without carefully considering this reinvestment option. Essentially, 1031 Exchanges should be thought of as an interest free loan from the IRS; one in which the principal may be increased through subsequent exchanges and may never require repayment, if you plan properly.

MISCONCEPTIONS ABOUT EXCHANGING

Many still believe that you must “swap” properties. Although this was required in the original code, this is rarely done in present times. 1031 Exchanges now enable one to sell their property to someone totally unrelated to the person from whom they are purchasing their replacement

Many believe only investors of large commercial properties can utilize the benefits of Section 1031. The great thing about 1031 Exchanges is that it applies to all investment properties, large and small. It will work the same way for a corporation selling a large shopping center as it would for an individual selling a single family home used as a rental property in a vacation area.

Many believe you must acquire a property of “similar use or service.” While 1031 exchanges are also known as “like-kind” exchanges, like-kind simply applies to real property held for business use or investment. Therefore, an investor may sell raw land and acquire a five-unit apartment building or sell a warehouse and acquire raw land. He can sell one property and acquire three or sell four and acquire one. Virtually any type of real property used for business use or investment will qualify.

Many believe 1031 exchanges are very complicated and not worth doing. The fact is that when working with a qualified intermediary who specializes in Section 1031 tax deferred exchanges, the exchange process is very simple. The intermediary will keep you aware of your time deadlines and ensure you do everything in strict compliance with IRS regulations.

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