April 13, 2016
Many of my Real Estate investor clients utilize a tax benefit known as a 1031 Deferred Exchange. This IRS regulation allows the seller of investment Real Estate ( and other types of investment Real Estate) to sell the assets, make a profit, but not pay income tax on that profit in that year.
A 1031 Exchange allows an investor to defer the tax obligations incurred during the year of the sale by reinvesting those funds in a like/kind asset.
There are many variations of the 1031 Exchange plans the Real Estate investors can take advantage of . I work with 1031 Exchange companies that handle all aspects of these transactions completely including all of the necessary reporting to the IRS so that my clients may rest easy that they have complied with the legal requirements to take advantage of these beneficial tax programs.