A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
1031 Exchanges are a large part of
Real Estate transactions
If you are a Real Estate Investor, you understand the
importance of the 1031 tax deferred exchange. The research that the National
Association of Realtors has done shows that without the opportunity for
investors to defer capital gains taxes, a large portion of Real Estate sales
would not take place and that not only hurts the Real Estate industry but all
industries that benefit from Real Estate Sales.
Some information from NAR:
The Like-Kind Exchanges: Real
Estate Market Perspectives 2015 survey of NAR's commercial and
residential members found that real estate investors and commercial property
owners place a very high priority on current like-kind exchange tax rules;
40
percent indicated that transactions would not have occurred in the absence of
the tax provision, and 56 percent said even if the project would have occurred
it likely would have been smaller in scale.
Realtors® are active participants in like-kind exchanges; 63
percent of Realtors® participated in a like-kind exchange transaction between
2011 and 2015. The survey found that like-kind exchanges in which Realtors®
participated created between 10 and 35 new jobs, mostly resulting from spending
on building improvements following acquisition.
Residential properties comprised the largest portion of
recent deals, accounting for 27 percent of disposed properties and 24 percent
of acquired properties, followed by apartments (17 percent of dispositions and
22 percent of acquisitions). Land assets accounted for 19 percent of
dispositions and 17 percent of acquisitions; retail properties accounted for 8
percent of dispositions and 13 percent of acquisitions; and office buildings
comprised 11 percent of dispositions and 10 percent of acquisitions.
If you want more information about the survey, go to the
link below
www.realtor.org/reports/like-kind-exchange-survey.
What the National Association of Realtors is trying to
convey with this survey is that 1031 exchanges should always be available to
the investor and those who would propose to do away with or curb the
availability of the exchanges should think twice about it. In my business of
Property Management in Orange County California, I deal with investors all the
time and many of the sales I participate in are 1031 exchange driven sales.
Most of those sales would never have taken place if the opportunity to defer
Capital Gains taxes were not available.
The bottom line is that if something works, LEAVE IT ALONE!
A.D. Cantelmo Property
Management Specializes in Property Management in Orange County
Ca.