Tax ? Can I Use A 1031
I am closing on my first deal next month. I bought the house in Oct. 03 and sold the house in May and should close June 04. so I have had the house for 8 months. (not sure if this matters) but we have had the utilities turned on the whole time.
Okay now to my questions: Can I file a 1031 on this flip?
IF so, does this hold your money until you put it into another investment, or can you use it for other things in the mean time?
Also, concerning the capital gains tax? Is it based on your income bracket or is it 15% if your taxable income + profit is under 58,000
Any help would be greatly appreciated. We are looking into an accountant to do our taxes for next year, since I have always done them in the past. I guess I need an accountant to figure what we can and not claim on the house.
Thanks for all of your advise.
ncrehabber
[ Edited by ncrehabber on Date 05/19/2004 ][ Edited by ncrehabber on Date 05/19/2004 ]
ncrehabber,
I'm new to this myself, but my REI group just covered this last Thursday, so some of the stuff I have some information on.
Quote:
On 2004-05-19 11:45, ncrehabber wrote:
IF so, does this hold your money until you put it into another investment, or can you use it for other things in the mean time?
The monies stay in an escrow account. Be sure you get set up with a Exchange accomodator *before* you sell your first property. The monies can never enter into your hands or the 1031 is null and void.
Seems like I read a thread here in the last couple of days that implied any third party could hold the funds for you while you waited for your next investment.
The rest of your question I'm not totally sure about.
HTH,
Robert
[addsig]