Have you ever wanted to rebel against the tax code? Do you remember that old Ben Franklin adage, “In this world nothing can be said to be certain, except death and taxes." Good news- Tax deferred exchanges provide comfort for the rebellious and make half of Franklin’s adage obsolete.
Accumulate wealth and solve problems through 1031 exchanges:
- Preserving your capital to enjoy the income from dollars not paid to Uncle Sam.
- Diversification through the use of the three property identification rule to adhere to the “Don’t put all your eggs in one basket!” rule.
- Management relief by selling a hands on property and exchanging into a DST.
- Estate Planning to minimize potential squabbling by heirs through exchanging a larger property into several smaller properties so that after the Exchanger’s death each heir will receive a different property and be able to do with it as he or she sees fit.
- Increasing depreciation through additional non-recourse leverage to create less taxable revenue resulting in more spendable revenue.
- Increasing cash flow by exchanging raw land for income producing real estate or from a geographic area with a humdrum economy to a geographic area moving up.
There’s no limit on how many times you can do an exchange; You can roll over the gain from one piece of investment real estate to another and then to another and another. Although you may have a profit on each exchange, you avoid taxes and when you die you take those taxes you avoided with you and your heirs receive a step up in basis.
Warning- 1031 exchanges may sound simple – beware the complications – learn the basics, under the header Resources check out FAQs and Do’s and Don’ts and regarding those complications -selling vacation homes, an unwanted person or entity on title, how to sell your highly appreciated main residence and pay no taxes, etc. Contact Us!