What are the benefits of doing a 1031 exchange versus a sale?
1031 like-kind exchange transactions are one of the last strategies available to defer capital gain taxes on the sale or disposition of qualifying property. Typically, by selling or disposing of your investment property you will trigger Federal and state capital gain and depreciation recapture taxes, which will leave you with much less to reinvest. This makes it extremely difficult for taxpayers to trade up in value, increase their cash flow and ultimately their net-worth. By completing a 1031 like-kind exchange, you are able to defer capital gain and depreciation recapture, and therefore have 100% of your net proceeds from the sale of your investment property available to reinvest in other like-kind replacement property, especially to trade up in value and improve your cash flow. In addition, 1031 like-kind exchanges allow taxpayers to acquire and dispose of properties to reallocate, consolidate or diversify their investment properties.
1031 like-kind exchange transactions are one of the last strategies available to defer capital gain taxes on the sale or disposition of qualifying property. Typically, by selling or disposing of your investment property you will trigger Federal and state capital gain and depreciation recapture taxes, which will leave you with much less to reinvest. This makes it extremely difficult for taxpayers to trade up in value, increase their cash flow and ultimately their net-worth.
1031 exchange transactions are one of the last remaining strategies available to defer the recognition of capital gain and depreciation recapture income taxes on the sale or disposition of qualifying property. Typically, by selling or disposing of your investment property you will trigger Federal and state capital gain and depreciation recapture income taxes, which will leave you with much less to reinvest. This makes it extremely difficult for you to trade up in real estate value, increase your cash flow and ultimately your net-worth when you have to recognize and pay these income tax liabilities. By completing a 1031 exchange you can defer your capital gain and depreciation recapture income tax liabilities and therefore keep 100% of your net proceeds from the sale of your investment properties available to reinvest in other like-kind replacement properties, especially to trade up in value and improve your cash flow. The 1031 exchange allows you to sell or dispose of and subsequently
