An important fact in regard to the 1031 process is that you CANNOT use your 1031 proceeds to fund improvements on land you own already. This is a common stumbling block of inexperienced investors. In order to qualify for a capital gains tax deferral, the replacement property must be of LIKE KIND with the relinquished … Read more
For investors interested in real estate, there may be no better and worthwhile tool than the 1031 exchange. In short, it is a process through which capital gains tax liability can be completely deferred. Enabling otherwise lost funds to be used for investment. It can be, however, a complex process, requiring due diligence … Read more
If you have some money then you may have considered trying to make your fortune with stocks, bonds, and maybe even real estate. The concept is to buy cheap and sell dear, since profit is the name of the game. Before getting into it though, there is something you need to know. These kinds of … Read more
If you are a real estate investor who is about to sell a property and use that money to purchase more real estate, make a 1031 Exchange instead of just selling outright. Making every dollar work for you compounds your wealth. Anytime you don’t compound your wealth, you have missed an important opportunity. A 1031 … Read more
A 1031 exchange refers to Section 1.1031 of the Internal Revenue Code which was passed in 1990. Normally, when you sell all real and personal property, the tax code requires the payment of the Capital Gains Tax. That is to say, when you sell your office for 0,000 more than you bought it for, you … Read more