Internal Revenue Code 1031 offers the real estate investor a powerful tax strategy that, when properly used, enables him to amass greater wealth.
IRC 1031 Exchanges are a popular tax deferral strategy for many investors. Even investors familiar with a traditional forward Exchange aren’t familiar with the potential advantages of a Reverse Exchange. We are very experienced in facilitating both types of Exchanges by properly identifying replacement real property and personal property assets as well as meeting critical deadlines.
Why a 1031 exchange?
A key advantage of the 1031 exchange is the ability to dispose of an investment property without paying capital gains or a depreciation recapture tax. The earning power of the deferred taxes works for the benefit of the investor instead of the US Government. The tax not paid can be regarded as an interest-free loan from the US Government for the savvy investor.