|
|
More About Destin Real Estate
Individuals and real
estate investors are naturally drawn to
water and Destin FL offers an abundance of
waterfront real estate choices including the Gulf
of Mexico, Choctawhatchee Bay, the intracoastal
waterway, golf course lakes, Destin Harbor, fresh
water dune lakes and tributaries to the
bay.
|
The tax deferral program has saved real estate investors billions over the last five years
A 1031 exchange is an income tax deferral strategy that allows a real estate investor to sell rental or investment property and defer the payment
of the resulting income taxes by reinvesting in replacement rental or investment property.
The Joint Committee on Taxation (JCT), a joint committee of members of the US Senate and Congress, publishes estimates of federal
tax expenditures. The January 2012 report estimates the tax cost of 1031 exchange deferrals over the next five years (2011 – 2015) at $15.2 billion.
Many sellers are simply unaware of this federal IRS program.
As the market recovers, more properties are selling and investors experiencing increased gains. According to the Florida Association
of Realtors, the statewide median sale price for existing single-family homes was up 7.8 percent from July 2011. Along the Emerald Coast,
residential home sales are up 56% in Okaloosa County and up 38% in Walton County during the month of July.
The rebounding market has created heightened interest in rental properties in the Destin area. For investors looking to make a switch
to a gulf coast investment property in preparation for retirement, the 1031 exchange is a great option.
The primary 1031 exchange rules require that the same taxpayer who sells property buys the subsequent property. The investor
must identify the replacement property within 45 calendar days post closing of the first property, and purchase of the replacement
property within 180 calendar days. In addition, the price of the replacement property must be equal to or greater than the old or relinquished
property, and the replacement property must be held as a business investment.
"The reasons investors are selling and buying vary greatly, and often involve a life change," said Andy Gustafson with Atlas 1031
Exchange. "An investor may be moving and want to remain close to his investment; An investor may want to consolidate investments for
easier management; An investor may want to sell a property in an stagnant location to purchase a property in the path of progress. The
reasons vary and our goal is to make investors aware of this option before the transaction instead of learning about it after the fact."
Article Courtesy of Newman-Dailey Resort Properties
Newman-Dailey Resort Properties specializes in resort rentals, sales and management in Destin and South Walton. For more than 27 years,
Newman-Dailey has been recognized for excellence, integrity and professionalism. The Real Estate Division is consistently listed among the top 10
percent of real estate companies along the Emerald Coast for sales. Visit DestinSales.com
|
|
|
|
|
|
