Take a look at The Tax-Free Exchange Loophole : How Real Estate Investors Can Profit from the 1031 Exchange by Jack CummingsRealty Barron talks about how you can Exchange Real Estate Tax Free using 1031 exchange. The claim " ...it can keep you from losing tens or hundreds of thousands of dollars in unnecessary taxes and loss of growth. ... The 1031 exchange is named after section 1031 of the IRS tax code. Basically, it allows you to exchange an existing investment property for a different investment property without having to pay capital gains taxes on the transaction. This applies to any investment property including rental houses, raw land, business property, commercial real estate, condos, apartments, etc. .. You can roll the profit from the sale of an existing property into the purchase of the next. Not only does this save you from having to pay capital gains taxes in the short-term, it can also preserve the ability of appreciated property to receive a step-up in basis at death which can eliminate those taxes altogether" Worth keeping in mind ...
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