Myths about 1031 exchange by a Ranch Advisor in Wyoming

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Myths about 1031 exchange by a Ranch Advisor in
Wyoming
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Many people are eager to exchange their property
to escape the taxes, but the information they
have about 1031 exchange is very limited. Here we
have highlighted some misconceptions clarified by
a Ranch Advisor in Wyoming. Lets have a look!
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Myth 1 It is mandatory to keep the replacement
property for years as a rental.
Reality Keeping property properly for two years
while meeting the criterion of the Revenue
Procedure will make you eligible for Safe Harbor,
but keeping your property for two years is not
necessary.
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Myth 2 You can only exchange the commercial
properties
Reality IRS has put no restrictions over the
exchange of other rental or business property.
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Myth 3 Taxability depends on the cash earned by
property sale
Reality Cash acquired on selling a property is
in no way related to the taxable amount generated
by the property sale.
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