IRS 1031 Exchange Explained

Irs 1031 Exchange Explained

It is the IRS approved method that enables you to sell your investment property investment property and reinvest in another investment property or investment properties, deferring all federal (and most state) capital gains taxes. This transaction is authorized by internal revenue code and is one of the best options for property investors to rollover their investment investment properties while preserving as much wealth as possible. By deferring any applicable taxes, the property investor has more money available to invest in other investment property. In effect, you receive an interest free loan from the federal government in the amount you would have paid in taxes.

When combined with an IRS 1031 exchange, 1031 tic investment properties can be even more attractive. Irs 1031 Exchanges allow you to defer capital gains taxes by investing in a like investment property. When using 1031 tic investment properties with an IRS 1031 exchange, you can defer capital gains while diversifying your investments. You can purchase shares of various 1031 tic investment properties in different locales with the proceeds of the 1031 sale.

If you are considering the sale of an investment investment property, contact a specialist today to discuss your IRS 1031 exchange options.