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1031 Exchange

"1031 Exchange is one of the best strategies remaining to Taxpayers"

On April 25, 1991, the IRS issued deferred exchange regulation-Reg 1.1031(k)-1.

This tax code allows taxpayers to defer ALL of the capital gains taxes resulting from their sale of investment property, when they will, use a Qualified Intermediary & following the I.R.S. guidelines, use the money to buy more suitable investment property within 180 days of the close of their sale.

This means that you can reinvest the money you would otherwise have lost to capital gains tax if you will use the extra money to buy more investment property for the purpose of making more money. This can be done within and between all classes of real property anywhere in the USA. Our service team is here to help make 1031 exchange as easy and effective for you as possible.

Here is a simplified example of the difference:

Selling Property Without Benefit of 1031		Selling Property as a 1031
If your Sale Price is:	$750,000	If your Sale Price is:	$750,000
Less your Mortgage:	$450,000	Less your Mortgage:	$450,000
This Leaves Equity of:	$300,000	This Leaves Equity of:	$300,000

With your Sales Price at:	$750,000	With your Sales Price at:	$750,000
and a Cost Basis of:	$250,000	and a Cost Basis of:	$250,000
You have a Taxable Gain of:	$500,000	You would have a taxable gain of:	$500,000

At the base Federal Capital Gain		However, since you will use all
Tax rate of:	15%	funds to purchase more
Taxes due:	$75,000	suitable investment property,
Left for investment:	$225,000	your taxable gain is:	$0.00
		Taxes due:	$0.00
		Left for investment:	$300,000
		Tax Savings:	$75,000
(State taxes not included in the above)

This is why 1031 Tax-Deferred Exchange is often cited as “The Best Tax Loophole Left.” When you get ready to sell that replacement property, you utilize 1031 tax deferral again. Now the amount of your tax savings has quadrupled. Bigger and better replacement properties that earn you more income can be yours. If you keep exchanging and never cash out, the difference in the size of your empire will be phenomenal! 1031 Exchange Help is a click or a phone call away.

Download A Free 1031 Exchange Information Pamphlet