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Writer's pictureAl Friedman

Investment Property Exchange with Tax Deferred Benefits


Are you interested in reducing your taxable income on the sale of a rental home or apartment complex? Relocate your commercial investment properties? Diversify your rental portfolio? Increase your investment returns?


Through Section 1031 of the Internal Revenue Code, participants can exchange one investment property for another with tax-deferred benefits.


"Like-Kind" Considerations- Property owners may exchange real property for another property of like-kind, as long as the properties are held for a qualified purpose--namely investment.


The like-kind requirement is easily met. For example, unimproved land may be exchanged for rental property, or an office building may be exchanged for a shopping center, as long as the properties are located in the United States.


Benefits of a 1031 Exchange- By exchanging one investment property for another, participants can receive substantial tax benefits through deferment of capital gains, depreciation recapture, and, when applicable, Medicare Tax.


Investors are able to leverage funds otherwise used to pay taxes to acquire a more desirable replacement property.


Who is eligible? Tax paying entities- individuals, corporations, partnerships, LLCs, etc- are entitled to the benefits under Section 1031.


Call me today to discuss further! (252)-564-8875




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