Sentences with phrase «replacement property and any debt»

Reinvest Cash Proceeds and Replace Debt To achieve total tax deferral, all cash proceeds from the sale of the relinquished property must be reinvested in the replacement property and any debt relieved must be replaced or netted with new cash.

Not exact matches

In those cases — and if you are current on payments — you can surrender the property to pay off creditors; reaffirm the debt and continue to pay it after the bankruptcy; or redeem it by paying the creditor the replacement value of the property.

And, you must replace the debt that was paid off on the sale of the relinquished property with an equal amount of debt on the like - kind replacement property.

In order to defer 100 % of the applicable depreciation recapture and capital gain income tax liabilities, Investors must meet three requirements when structuring tax - deferred like - kind Exchanges: (1) Exchange or trade equal or up in value; and (2) reinvest 100 % of the Investors equity (net cash proceeds from sale of relinquished property); and (3) replace any debt with new debt on the replacement property.

There is conflicting information on whether or not the debt has to be equal and I've decided the FMV being equal on the replacement properties is the most important factor to remember.

You can allocate the equity put down and the debt take out anyway you wish as long as the Replacement Properties that you acquire have a total combined purchase cost that is equal to or greater than the Net Sale Price of your Relinquished Property (not net equity or net profit, but Net Sale Price) and you reinvest all of the net equity (cash) into the Replacement Properties.

Partial Exchange: When a tax - deferred like - kind exchange entails receiving cash, excluded property and / or non-like-kind property and / or any net reduction in debt (mortgage relief) on the replacement property as well as an exchange of qualified, like - kind property.

Generally, for full tax deferral, you must (1) acquire like - kind replacement property that is equal to or greater in value than the relinquished property sold (based on net sales price, not based on your equity); (2) must reinvest all of the net proceeds or cash (net equity) generated from the sale of the relinquished property; and, (3) must replace the amount of old debt that was paid off on the disposition of the relinquished property with new debt of an equal amount on the like - kind replacement property.