Investors love tax deferred exchanges which allows investors to defer capital gains taxes when they exchange qualified real estate for "like kind" properties, and can delay settling with Uncle Sam. Financial planners have been advising people to invest in real estae, and we have seen a significant increase in parties buying investment property in all of our markets. I expect more people to do 1031s in the coming years. In working with one client, I was able to show them some numbers that would lead to a significant tax hit associated with selling their property outright verses the benefits of doing an exchange. The result: a 1031 deal and a happy new client. The important part of a 1031 exchange is becoming knowledgable before you sell so you are not turning over a chunk of money to the government. Although there are many factors to consider, I recommend you work with a qualified tax advisor on these types of deals. I can help you through this process.
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