Have you ever wanted to rebel against the tax code? Do you remember that old saying by Ben Franklin, “In this world nothing can be said to be certain, except death and taxes.” – does that ring a bell?
Here’s some good news for the tax-haters: Tax-deferred exchanges provide comfort for the rebellious, and make half of Franklin’s adage obsolete, to the extent that you can offset tax with exemption. It’s an opportunity worth considering.
Seek Wealth and Strive to Solve Problems with 1031 Exchanges!
When you take on a 1031 exchange with the savvy of Marilee Hill, you get to cover your tax costs with a clever real estate strategy, working to preserve your capital in order to enjoy income potential (in the form of dollars not paid to Uncle Sam) and strive to improve your bottom line as you make your money work for you.
You can also optimize your estate planning, to minimize potential squabbling by heirs, and potentially benefit from increasing depreciation and increasing cash flow.
Also, under the current tax code, 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 or not, all the way through your investment career, until you pass on and your descendants take over and the old taxes disappear.
A Word of Warning
1031 exchanges may sound simple, but beware the complications.
In getting started with a 1031 exchange plan, it’s important to learn the basics. Take a look at our FAQs and “Do’s and Don’ts” regarding those complications – for instance, 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!
Our mission is to strive to understand our client’s concerns and goals, and to provide them with good information to plan exchanges for suitable replacement properties. We excel in devising appropriate strategies to help our clients strive for their goal to keep profits in their pockets, rather than losing them to excessive tax burdens.
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Current Internal Revenue Code 1031 offers the real estate investor a powerful tax strategy that, when properly used, enables him or her to keep more money generated by a transaction. A key advantage of the 1031 exchange is the ability to dispose of an investment property without paying a capital gains tax or a depreciation recapture tax. The earning power of the deferred taxes works for the benefit of the investor, instead of Uncle Sam. The tax not paid can be regarded as an interest-free loan! We can explain how this has the potential to work to benefit property owners.