Tax Credits CA Investors Need to Know About

Harris and Elias took specific questions from attendees about the various benefits and deductions.

SAN DIEGO—From the ins and outs of 1031 Exchanges to cost segregation and other tax benefits, there are a few details and updates California real estate players may not be aware of, said two tax specialists at Thursday’s CREW San Diego lunch event here. Roughly 50 CREW members, including GlobeSt.com, attended the event at Balfour Beatty’s Scripps Ranch offices to learn more about the benefits and pitfalls of these tax tools.

Elizabeth Harris, assistant VP of Exeter 1031 Exchange Services, began by defining what a 1031 Exchange is—and what it isn’t. A 1031 Exchange refers to the tax-deferral strategy as defined in Section 1031 of the Internal Revenue Code, which “allows you to exchange real or personal property that was held for rental or investment purposes, or that was used in your trade or business (‘relinquished property’), for other real or personal property that will also be held for rental or investment purposes, or that will be used in your trade or business (‘replacement property’),” said Harris. The exchange “enables you to defer the payment of your ordinary income, capital gain, depreciation reception and/or Medicare Surcharge (‘Obamacare’) income-tax liabilities.”