You have several options if you are considering a like kind exchange.No matter what kind of investment property you currently own or are considering acquiring, you can save taxes through a 1031 tax deferred exchange. By working with a Qualified Intermediary like 1031 Exchange Place, you can participate in:
The key to a successful 1031 tax exchange or a 1031 like-kind exchange is knowing and understanding the rules that apply to the sale and acquisition of property. Working with 1031 Exchange Place gives you access to some of the most knowledgeable 1031 tax exchange experts in the business; providing options for your exchange and helping you get the most from your 1031 exchange dollars.
When you work hard for the money you earn, so you want your money working for you! You want to find ways to keep as much of your money as possible, and part of that is avoiding paying excessive taxes. Likewise, when buying and selling real estate, you want to keep as much of your money working for you as possible. If you were to undertake a typical real estate transaction, any gains that you realize from the sale of an existing property will be taxed even if you reinvest in another property.
To protect against these taxes, the experts at 1031 Exchange Place can help you with a 1031 tax exchange, named after section 1031 of the IRS code. A 1031 tax deferred exchange allows you to defer the taxes on the sale of a relinquished property, as long as you reinvest the proceeds of the 1031 like-kind exchange into another property that is acquired for business or investment purposes. Since you are not paying tax on the gains from the sale of the original property, you keep the entire proceeds working for you. Even if you exchange the property for a different type of investment—for example, selling vacant land and investing in a retail property—this is still considered by the IRS as a 1031 like kind exchange and not be subject to taxes.
There are several different taxes applied to property sales, which can add up to a lot of money if you are buying and selling real estate on a regular basis, or even if you just have a one-time sale. Whenever you are thinking about selling real estate, the benefits of 1031 tax deferred exchange should be considered: