Tax Deferred Exchanges
When was the last time the IRS said, "Don’t bother paying the taxes you owe"?
If you have not yet discovered the awesome financial power of Tax-deferred Exchanges, your answer to that question is probably, "You must be joking!"
No, we’re not joking. Exchange regulations pursuant to Internal Revenue Code Section 1031 Exchange allows investors to defer substantial Federal and State capital gains taxes usually owed at time of sale. In essence, the IRS is handing you a financial gift that can continue to defer into other properties. Funds saved on taxes mean more purchasing power and, in most cases, increased return on equity, and increased depreciation and interest deductions. The combination of benefits creates a sound financial platform to enable you to keep exchanging into larger, more financially productive properties.
The IRS makes it easy for you to take advantage of the 1031 Exchange by including a broad range of qualifying properties, including any property used in a trade or business, such as single-family rentals, duplexes, apartments, retail, commercial, industrial and raw land.
Also, the IRS allows reasonable time for you to complete your exchange transactions. You have 45 days from close of escrow on the relinquished property to identify your replacement property, and 180 days between close of escrow on the relinquished property and close of escrow on the replacement property. What could be easier?
As a 1031 Exchange Specialist for three decades, I have guided hundreds of first-time and seasoned clients through the process of exchanging. The benefits for many of my clients exceed the obvious financial savings and expanded portfolios; in many cases it has significantly improved their standard of living, created a secure retirement and provided peace of mind for the future.
If you need relief from capital gains tax, please contact me for a complimentary investment analysis to see how a 1031 Exchange can build your wealth while protecting your assets. There is absolutely no obligation.