Why only 3%?
Section 1031 of the IRS tax code provides a way for investors to defer paying capital gains taxes when they sell one investment property and replace it with another. IRS and the National Association of Realtor data indicate that less than 3% of investment property sales use this powerful strategy. Many investors simply do not have the information they need to utilize 1031 exchanges to build their real estate portfolio.
Trust the Experts
While 1031 exchanges have specific requirements, in most circumstances, investors simply need to abide by a few basic rules to take advantage of this option. An experienced Qualified Intermediary will guide investors through the process, documentation, and handling required to successfully complete an exchange. While it may seem too good to be true, it is possible to sell your investment property and roll all the gain to a new property without paying any tax in the here and now.
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