1031 Exchange and Tax Advantages A 1031 Exchange or Like Kind Exchange is defined by Section 1031 of the InternalRevenue Code. This code specifies that if an asset (usually some form of real estate such asland or a building) is sold and the proceeds of the sale are then reinvested in a like kind of … Read more
In this era of heightened awareness of human rights, the title looks like a blasphemy, but bitter truth is often more repugnant than fiction. For instance, presently, a slave costs 1/38th of the price 160 years ago, making the business very profitable with a ROI of 8 times. Throughout history (and even … Read more
A 1031 exchange is a great tool for investors who want to avoid paying tax on the gain from the sale of real estate; however, in order to completely defer the tax, an investor must: Find one or more “like-kind” replacement properties with a total fair market value that equals or exceeds what is being … Read more
The 1031 exchange is a great instrument for property owners who wish to defer their capital gains tax. However, not all states treat 1031 exchanges equally. California regulations stipulate that any appreciation in property value accrued in California is subject to their state taxes, regardless of whether or not that property was exchanged for … Read more
Many of our area’s real estate investors have heard of the 1031 exchange, a technique where property held for investment is exchanged for “like kind” property thereby deferring capitol gains taxes until a later tax year. While investors like being able to defer taxes until a later year, many complain that they’d like a way … Read more