Avoid Paying Capital Gains Tax When Selling Your Home

The US Tax code allows us to postpone paying taxes when we sell income properties. Your capital gains can then be used to acquire different income properties. When applied strategically, this tax code can be useful in the sale of personal properties and vacation homes as well. Ron Ricard, CES® Vice President of IPX1031 explains the in-and-outs of using 1031 Exchange in this informative session. This is a recording of an Information Evening I hosted on July 29, 2020. This is part of my regular series (previously Information Happy Hour).

In this first installment, I give a current (as of July 2020) market snapshot of the SF mid-peninsula. Despite Covid-19 concerns, June saw prices moving upwards. Buyers are taking advantage of historically low interest rates. Also, the need for home offices, or even just more space, became evident to many during Shelter-in-Place. The housing inventory is low, but buyers are highly motivated and snatching up properties quickly, at over list price.

The following video include a very warm welcome for Ron, with a compelling list of credentials. At IPX1031 Ron is Vice President and Regional Account Manager for Northern California. He is designated as a Certified Exchange Specialist®, one of fewer than 110 people nationwide who currently carry that certification as accredited by the Federation of Exchange Accommodators. Since 2002, Ron has taught 1031 Exchange accredited courses to over 30,000 investors, real estate agents and others. Ron is a frequent contributor on local radio and television real estate shows and is a guest lecturer at the College of San Mateo, Menlo College and San Francisco State University.  He has served on the Board of the Santa Clara County Association of Realtors and the Commercial Broker Association, and is very involved with numerous real estate associations and industry groups throughout Northern California. Ron has a BS in Civil Engineering from UC Berkeley, a MBA in Marketing and is an active real estate investor.

What is 1031 Exchange? In this video, Ron begins to explain what the advantages of using this tax program for property investors. If you don’t own income property, don’t tune out. There are advantages for you as well if you decide to take part in the program.

I will add the remainder of our Information Evening videos in the days to come. In these installments, Ron will answer myriad questions about 1031 Exchange, including questions from the audience. These include:

  • What Properties are Included?
  • What Properties are Excluded?
  • What is the timeline that must be followed?
  • How much capital gains can be used?
  • Can we move into our own rental properties?
  • Does CA Prop 13 have any effect on 1031 Exchange?
  • Does depreciation play a role in determining when to use 1031?
  • Are DSTs a useful tool for 1031 Exchange?

There is much to learn. I will update the blog regularly with these follow up videos, so please STAY TUNED HERE!

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This post was written by Rumana Jabeen

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