Tuesday, March 22, 2011

A '1031' Did You Know Primer

Avoiding capital gains taxes are the primary reason why many investors take advantage of IRC 1031 exchanges.

But there are a host of other reasons why a 1031 tax-deferred exchange might be a smart strategic choice for owners of commercial/investment real estate:

For one, you can exchange fully depreciated property to obtain the benefit of a new depreciation schedule. Or a 1031 would work well if a taxpayers business is being relocated. Sometimes the investment property needs to be in a different geographic location in order to streamline ease of management.

Did you know that investors can exchange into property that better accommodates a taxpayer's trade or business? Sometimes it is as simple as replacing time consuming management properties with more easily managed properties.

And sometimes it just comes down to a need to replace non-income producing property with income producing property.

Many needs. One dynamic investment strategy.....

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