Save on Property Taxes with Deferred Exchanges

Mon, 20 Jul 2009 20:22:35 +0000

One of the things that you have to deal with when it comes to selling and buying property is paying capital gains tax. Investors usually find themselves losing investment equity to taxes with the standard purchase of property. With 1031 exchange, you can sell a property and buy another of the same type without shouldering the capital gains tax. You have to go through deferred transaction in order for you to achieve this.

With 1031 exchanges, you can sell one property then acquire another within a specific time frame. Both properties should be qualified according to IRS rules before you can carry out a deferred exchange. You should seek the advice and services of a real estate agent to make sure that your transaction will go smoothly. The IRS requires that a property should be used productively for business or trade or to be used for investment.

Beyond Know How » capital gains tax

Save on Property Taxes with Deferred Exchanges