Why Pay Unnecessary Capital Gains Taxes?
The 1031 Tax Free Exchange is first and foremost a financial tool used to defer paying capital gains and depreciation recapture taxes on real estate investments, not a tax-evasion tool. The 1031 Tax Deferred exchange is a vital part of any savvy real estate investment strategy. ยง 1031 of the IRS Tax Code allows an owner of real estate investment properties to take the proceeds and profits from the sale of their old investment property and identify and purchase an exchange property of a like-kind or greater value to defer paying capital gains and depreciation recapture taxes. Thus, the 1031 Tax Free Exchange is an essential part of any real estate transaction, it requires careful thought and precise planning as the deadlines and requirements are complex and ever changing. Investors in the process of putting an investment property on the market should begin considering how they will identify properties and utilize the 1031 Tax Deferred Exchange as soon as possible to ensure compliance wi
