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What is a 1031 Tax Exchange?
The 1031 exchange is one of the country's longest
standing tax laws.
Section 1031 allows owners of investment or
business real estate to
legally defer state and federal capital gain
taxes on the disposition
of their property.
How can a 1031 Tax Exchange benefit
you?
The 1031 exchange process provides a means for
owners of business and/or investment property to potentially
increase their cash flow and net worth by taking advantage of
deferred taxes. It can assist owners in diversifying their
assets either geographically or by product type. Also an
investor does not have to exchange one property for another single
property. Owners have the option to exchange one property for
two, or two properties for one. A 1031 exchange also may offer
advantages in terms of depreciation recapture and/or state
withholding
taxes.
What Properties Qualify for a 1031
Tax Exchange?
With the exception of a primary residence, an
investor may exchange
all types of real property. "Like-Kind"
property is considered to be real property that is held for trade,
investment or business purposes.
Examples are:
To learn more about 1031 exchanges
check out these resources from
Asset Exchange Company.
Contact Sean
to
discuss how you can benefit by selling your property and exchanging
into another property using a
1031 Tax Deferred Exchange!
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