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"Cindy and Bob are a true class act!"

"Cindy and Bob are a true class act! They took time to listen to us, and helped us to determine our needs. They then worked very hard, as a Team, to make selections that best fit our life style. They are very responsive, professional and a true pleasure to work with. We purchased our house in 2005 and love it! It suited us perfectly and we owe a lot of thanks to Cindy and Bob Czaskos for their effort. Thanks guys!"

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School Reports in Clinton, Hunterdon County and Pittstown, New Jersey

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Tax Considerations >New 1031 Exchange Rules

One of the most popular "tax deferring" strategies for real estate owners who are selling one property and acquiring another is the use of Section 1031 of the Internal Revenue Code. It is an effective way to defer paying income tax on capital gain generated by the sale of a property when you intend to reinvest the proceeds in a similar, "like-kind" property. Almost any kind of real property is considered "like-kind" with any other real property.

A recently enacted law closes what was considered a loophole in the Section 1031 rules. In some cases, owners of investment real estate have used the 1031 Exchange to swap their investment property for real estate that could be readily converted to an owner-occupied residential property. After the exchange, they made the property into their principal residence, lived in it for a couple of years, then sold it. Now the American Job Creation Act of 2004 has ruled that properties converted from a 1031 exchange property into a residence must be held and used as a principal residence for at least five years to qualify for the tax exemption. Otherwise, the basic tax-deferring benefits of 1031 exchanges remain the same.

Consult your tax advisor for more detailed information.

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Q	What Oscar-winning 1999 Best Picture about two neighboring American families was filmed in the interior of two actual homes located 12 miles apart?
A	"American Beauty," starring Kevin Spacey and Annette Bening.
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Cindy Czaskos, REALTOR®, real estate agent and broker for Clinton, Hunterdon County and Pittstown, New Jersey home listings, property and land for sale - NUMBER1EXPERT(tm)

Cindy Czaskos
Weichert Realtors
9 West Main St.
Clinton Township, NJ 08809
908-391-5473
Fax: 908-735-8372
cindbob@gmail.com

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