With property values soaring across the country in recent years, you may have found yourself with an investment property loaded with equity but are unable to raise rents high enough to cover the refinance, which means you are probably losing out on top yields!
If you are starting to look at new property ventures to gain back that edge...
Before you outright sell your investment properties...
You deserve looking into a 1031 Exchange!
(Exchanging defers paying those nasty Capital Gains Taxes!)
There are many different ways to Exchange property.
What the IRS allows is defined as "LIKE-KIND".
What that means is you can exchange ANY Investment Grade real property for any "KIND" of investment grade real property - that's how we get the term "Like-Kind".
For Example:
If you have a vacant land site that you bought for investment purposes say for $5,000, and now it's worth $50,000 you could exchange that $45,000 gain, into let's say a duplex.
As long as the duplex can take the whole $45,000 and there is a debt equal to the exchanged property you should be able to make the exchange, thus deferring the Capital Gains Tax on the $45,000 and thereby leveraging your duplex purchase.
Keep in mind that the duplex could just as easily have been a triplex, a house, a commercial retail strip, more vacant land...anything "LIKE-KIND".
Obviously it's not just this simple. You must follow all the rules and laws laid out by the IRS to the letter or risk the exchange being tax deferred.
For Instance: You must use the help of professionals. You can not do an exchange on your own. You can not use your personal attorney or CPA to complete the exchange. You must meet the datelines set by the IRS or lose the exchange (this is one of the top reasons exchanges are denied).
If you need to sell a property and are looking for an alternative to paying Capital Gains, then you owe it to yourself, and your future, to sit down with me and learn more about this exciting feature of the tax laws.
There's absolutely:
No up-front costs or fees... No up-front investment... No obligation...
For this one-on-one meeting!
Please fill-out the form below completely;
I will be happy to answer any of your questions and go over this exciting 1031 Exchange opportunity with you.
I look forward to meeting you soon.
Sincerely,
DON JOHNSON - BROKER ASSOCIATE (Click Here To See Who Don Johnson Is)
Call Me Direct At: 407-462-4992
|