2 Ways to Benefit from a 1031 Tax Exchange

Written by admin on May 4th, 2011


Did you know there are many different ways you can benefit from a 1031 tax exchange if you invest in commercial real estate? You will need to procure the services of a qualified CPA in order to determine your property needs and to comply with IRS regulations. However, by the time you find a qualifying 1031 property, you will discover that it more than makes up for the costs of CPA advice.


So, how do you benefit from 1031 Properties?


Deferred taxation. While you are making investments today, you are probably in a much higher tax bracket than you plan to be in when you are benefiting from those investments. As a result, paying taxes now on the money will cost much more than paying them later on the property.

Investment growth. Because you are trading up when you utilize a 1031 exchange, the general line of thinking is that you will be building an investment portfolio that is constantly increasing in value. It is vitally important you follow the law to the letter when participating in a 1031 property exchange, or you could find yourself in serious trouble. The good news is, if you are working with qualified pros, it will not be at all difficult to do things the right way from the start.


The goal, of course, is to perform many of these transactions over the years so your property investment portfolio will continue to grow. As you become more familiar with the process you will be better able to utilize this incredible benefit more frequently. Until you do, it is a wise idea to seek the services of a 1031 specialist to help you each and every step of the way.

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a Reply