1031 Exchange… Harness Its Power...
Thursday Feb 23rd, 2023
Anyone who owns real estate can harness the power of the 1031 exchange.
This helps you get rid of the property, which is non-performing, does not meet your needs, or a pain in the a**.
Just by following a process, you can replace your property and buy a replacement investment while deferring tax payment on the gain from the sale.
To put simply,
The 1031 exchange is a wonderful tool that provides the cash flow luxury while deferring taxes.
Savvy investors have been making extravagant benefits using this tool for decades.
And you can also make gains and legally delay paying taxes on investment gains when you sell a qualified property – through a properly executed 1031 exchange.
The premise is simple: Whenever you sell business or investment property for a gain, you generally have to pay tax on the gain at the time of the sale.
IRC Section 1031 provides an exception.
You can postpone paying the fee on the gain if you reinvest it in a similar, “like-kind” property…
Here, you’re actually not selling the property rather exchanging it and making gains from that exchange.
Sade Sanni, Broker of Record.