1031 Tax Deferred Exchange to Avoid Capital Gains Tax
When Selling Your Tampa FL Home
What is the purpose of a 1031 exchange? A 1031
A 1031 exchange is often referred to as a Starker exchange.
Exchanges Allow You to Delay Capital Gains Taxes
Capital gains taxes are deferred if all of the exchange funds are used to purchase
The deferment is like getting an interest-free loan on the tax dollars you would have owed for a cash sale. More equity is retained, and that helps you move into properties of higher value each time you perform a 1031 exchange.
A 1031 exchange is possible when you sell real estate held for investment purposes. It cannot be used for the sale of your personal residence.
Exchanged properties must be like kind. For a real estate exchange this means real-property for
You can exchange a single property for multiple properties, or purchase one property from the proceeds of several. Proceeds not used to purchase new investment property are taxed as a cash sale.
"In a like-kind exchange, both the property you give up and the property you receive must be held by you for investment or for productive use in your trade or business." -IRS
Here are two 1031 exchange companies that we have previously worked with:
1031 Exchange Advantage | Asset Exchange Company
If you would like more information on using a 1031 exchange, contact us today. We'd love to hear from you!