Defer Capital Gains Tax On Reinvestment
The most widely recognized type of 1031 Exchange is utilized for real estate, likely because of the expansive definition of what is considered “like-kind” for Real Estate Exchanges. Under this, any U.S. real estate property held by the client for productive use in a business or trade, or investment can be exchanged for any “like-kind” property, regardless of the grade or quality.
Real Estate Exchange Example
An institutional investor exchanges an apartments complex valued at $24,750,000 with no debt in New Jersey for a $30,000,000 office building in Texas for a tax savings of over $3 million that can be used to purchase substantially more replacement property.
|Tax Deferred Savings||-0||$3,412,500|
|Cash available for Reinvestment||$21,337,500||$24,750,000|
1031 Exchange Benefits
- Defer Tax
Save capital gains tax on your next property sale by signing up for a 1031 exchange agreement.
- Equity Growth
Acquire better-performing assets situated at prime locations. Enjoy increased cash flow over a period of time.
- Property Appreciation
Hold onto your investment property to let it mature and rise in value. Relax & watch your investment growing.
- No Landlord Responsibility
Get rid of untimely payment reminders and the burden of tracking property bills. Let your tenant bear operating expenses.
- Portfolio Diversification
Invest your sale proceeds in multiple investment properties and diversify your portfolio—own assets of different grades.
- Build For Heirs
You can start today and build wealth and assets for your heirs. Provide financial security to your family’s younger generation.