Video Transcript
We’re going to talk a little about what is different about the state of Colorado with 1031 Exchanges. In the state of Colorado when you’re doing an exchange here, there is a 2% withholding on the sale of investment real estate. But that 2% withholding completely is avoided by doing a Tax Deferred Exchange. You want to make sure that the exchange has no boot, has no buydown or leftover exchange proceeds so that the entire exchange is valid and therefore none of the 2% withholding is applicable.
Colorado does not have any other, rules that inhibit the exchange process. For example, California has a clawback provision. Colorado doesn’t have anything like that. So the biggest obstacle we have other than buying real estate in today’s market is that 2% withholding, which again can be completely avoided by doing a fully deferred tax 1031 Exchange.
So please call us anytime. We’d love to be able to answer more questions for you.
Understanding the Colorado 1031 Exchange Process
If you have any questions about the Colorado 1031 Exchange process or any other 1031 topic, please visit our IPX 1031 Colorado website at www.ipx1031.com/colorado or feel free to contact IPX1031. We’re happy to help.
Click to visit Colorado 1031 Exchange page