1031 Exchange and You
Are you thinking about selling an investment property but hate paying capital gains taxes and losing out on those earnings? Fortunately, there is a way to avoid paying those nasty taxes preserve your profits. A tax deferred exchange, or 1031 tax exchange, takes advantage of Section 1031 in the IRS tax code by allowing one to sell and buy a new investment property in a transaction that takes place like an exchange.
Upon the sale of a property another qualified property can be bought within 45 days of the original sale and the taxes can then be deferred. Imagine not paying taxes on the gains from your transaction. This method enables individuals to guard more of their earnings from a sale and build financial wealth, though the taxes really are only deferred until a time when the property is sold.
