Tulsa Commercial Real Estate Experts: What Is the Most Common Misconception That People Have About t

Tulsa Commercial Real Estate Experts: What Is the Most Common Misconception That People Have About the Section 1031 Tax Deferred Exchange Program?

by U.S. SBA Entrepreneur of the Year & Cofounder of Fears & Clark Tulsa Commercial Real Estate Group - Clay Clark

Well to be frank (or Clay), I must say that it would be hard to pin point one "most common misconception" because nearly everyone believes that they can just declare the sell of their property as a "1031 Exchange" by simply filing a form after the sell or by putting aside the revenue after the transaction takes place. However, because this program was designed by the government it is complicated and nearly everybody has multiple misconceptions related to the ease of the program firmly planted in their minds.

Alot of times, people who have just sold their property will find out that they could have actually avoided paying huge sums of taxes if they had simply completed the 1031 Exchange. Many taxpayers then believe they can still qualify if they just file a form. This is simply not true. Still other tax payers believe that two people literally have to swap properties to make this "move" possible. They believe that Navin and Steve must literally swap properties of equal or less value like baseball cards to qualify for this. In fact the reality is that the person who is looking to qualify for the 1031 Exchange program must sell their property to someone who is specifically not Participating in the 1031 Exchange.

Still other people (and most people) are not aware of the kinds of properties that do not qualify for this incredible 1031 Exchange Program. And because most people are not aware of the types of properties that do not qualify I have decided to list them below: Stock in a trade or property primarily held for sale, stocks, bonds or notes, other securities or evidences of indebtness or interests, interests in a partnership, certificates of trust of beneficial interests, chooses in action, personal residences and snow cones.
For more information about the 1031 exchange program, purchasing Tulsa commercial real estate, Tulsa commercial real estate, Tulsa commercial office buildings, Tulsa office buildings, Tulsa real estate, Tulsa office space, Tulsa commercial space available and Tulsa commercial investment properties please feel free to contact our expert team of commercial real estate professionals today at 918-481-2080. Or you can visit us online at www.FearsClark.com.