Benefits of 1031 Tax Deferred Exchange
To avoid the tax burden that often accompanies the sale of an investment property, many owners utilize an exchange of real estate. In essence, effectively trading one investment property for another. This process basically allows the owner the ability to utilize 100% of the proceeds from the sale of property to purchase a new property thereby deferring the capital gains taxes. It is also commonly referred to as a 1031 Tax Deferred Exchange.
Real Estate owners can accomplish several investment objectives using a 1031 Exchange. Among those objectives are:
Section 1031 exchanges offer a number of opportunities because of their flexibility. They are worth a look if you are considering selling an investment property and acquiring another.