Naturally, every real estate investor wants to know how to make the Internal Revenue Code 1031 work best for them. They may think it is just for investors who have multi-million dollar properties, however that is incorrect. If an investor wants to sell their property, not have to manage real estate again and have their cake and eat it too, then a 1031 property exchange is a powerful tool.
The 1031 real estate exchange is so powerful because is available to all investors, regardless of the size of their holdings, as long as the property has been used for investment or business purposes. No matter whether you are interested in selling undeveloped land, a multi-family dwelling, a strip mall or hotel property, the 1031 is a great tool to use for deferring non-recaptured depreciation and capital gains.
Often times an investor will chase market appreciation, yet they need to realize that any investment only makes sense if it can produce enough of a cash flow. In order to give yourself the ability to redirect investments without incurring capital gains taxes, you need to take advantage of the Internal Revenue Code 1031. You will be doing yourself a big favor, especially in a tenuous market.
One of the biggest developments in the section 1031 exchange is the variety of replacement property choices that now exist. Originally, investors were limited to locating new property that would carry pretty much the same headaches as their old property; however, IRS procedure 2002-22 codified TIC exchange (tenant-in-common) and this was basically the birth of a new real estate industry.
For the investor who is fed up with hands on management due to the increasing operating costs and high capital improvements that become necessary, the Internal Revenue Code 1031 exchange is a perfect solution to their exit strategy. Under a section 1031 exchange, an investor can obtain TIC interest that will eliminate the hassle of management, as it turns all of that over to a team of experts, and they will still receive a steady income. And at a later time they are able to avoid capital gains by exchanging their property and eventually turning it into their primary residence, thus giving them a great retirement property. - 31821
The 1031 real estate exchange is so powerful because is available to all investors, regardless of the size of their holdings, as long as the property has been used for investment or business purposes. No matter whether you are interested in selling undeveloped land, a multi-family dwelling, a strip mall or hotel property, the 1031 is a great tool to use for deferring non-recaptured depreciation and capital gains.
Often times an investor will chase market appreciation, yet they need to realize that any investment only makes sense if it can produce enough of a cash flow. In order to give yourself the ability to redirect investments without incurring capital gains taxes, you need to take advantage of the Internal Revenue Code 1031. You will be doing yourself a big favor, especially in a tenuous market.
One of the biggest developments in the section 1031 exchange is the variety of replacement property choices that now exist. Originally, investors were limited to locating new property that would carry pretty much the same headaches as their old property; however, IRS procedure 2002-22 codified TIC exchange (tenant-in-common) and this was basically the birth of a new real estate industry.
For the investor who is fed up with hands on management due to the increasing operating costs and high capital improvements that become necessary, the Internal Revenue Code 1031 exchange is a perfect solution to their exit strategy. Under a section 1031 exchange, an investor can obtain TIC interest that will eliminate the hassle of management, as it turns all of that over to a team of experts, and they will still receive a steady income. And at a later time they are able to avoid capital gains by exchanging their property and eventually turning it into their primary residence, thus giving them a great retirement property. - 31821
About the Author:
Looking to find the best deal on 1031 Exchange, then visit www.yoursite.com to find the best advice on Internal Revenue Code 1031 for you.
