What are the benefits of 1031 exchanges v. selling my property?
• A Section 1031 exchange is one of the few techniques available to postpone or potentially eliminate taxes due on the sale of qualifying properties. • By deferring the tax, you have more money available to invest in another property. In effect, you receive an interest free loan from the federal government, in the amount you would have paid in taxes. • Any gain from depreciation recapture is postponed. • You can acquire and dispose of properties to reallocate your investment portfolio without paying tax on any gain.
