Before starting a 1031 exchange, ask your tax advisor whether an exchange makes sense for your situation, how much tax you may actually defer, what deadlines and identification rules apply, how debt and closing costs could create taxable boot, and what records and reporting will be required. Clear answers upfront can help you avoid expensive mistakes. … [Read more...] about Questions to Ask Your Tax Advisor Before Starting a 1031 Exchange
How 1031 Exchange Tax Deferral Can Be Part of a Larger Investment Strategy
A major benefit of a 1031 exchange is the potential to defer capital gains taxes when proceeds from the sale of qualifying investment real estate are reinvested into a replacement property according to IRS requirements. A 1031 exchange can also be used as part of a larger investment strategy. For example, an investor could sell an existing commercial property and exchange into … [Read more...] about How 1031 Exchange Tax Deferral Can Be Part of a Larger Investment Strategy
How to Include a 1031 Exchange in Your Long-Term Estate Strategy
A 1031 exchange can be part of a long-term estate strategy, not just a one-time tax deferral. This is a benefit that not many taxpayers are fully aware of. In this article, we discuss how you can include 1031 exchanges in your long-term estate strategy. The Long-Term Benefits of a 1031 Exchange There’s nothing in the tax code or treasury regulations that says you can only do … [Read more...] about How to Include a 1031 Exchange in Your Long-Term Estate Strategy
1031 Exchange vs. Opportunity Zone Investment: Which Tax Strategy Fits Your Goals?
A 1031 exchange generally suits investors who want to stay in real estate, preserve their full equity, and defer taxes by rolling over into another like-kind property. An Opportunity Zone investment may fit investors who want to reinvest capital gains more flexibly, accept a longer hold, and potentially exclude future appreciation on the new investment. … [Read more...] about 1031 Exchange vs. Opportunity Zone Investment: Which Tax Strategy Fits Your Goals?
1031 Exchange vs. Cashing Out: How to Compare Your Options After a Property Sale
A 1031 exchange usually makes more sense when you want to keep investing and preserve more equity by deferring capital gains and depreciation recapture taxes. Cashing out may be the better fit when liquidity, simplicity, or a change in investment direction matters more than tax deferral. … [Read more...] about 1031 Exchange vs. Cashing Out: How to Compare Your Options After a Property Sale