A 1031 Exchange, also referred to as a Like Kind Exchange or Starker Tax Deferred Exchange is a Section in the Internal Revenue Code that states if an asset, typically real estate, is sold, the profits of that sale can be reinvested in an asset of a similar kind without a capital gain or loss penalty.
Because of all the investing happening now with cash buyers and rental properties, 1031 exchanges are becoming more and more popular. This allows a seller to list and sell their property first and then buy a replacement property at a later date without profit penalties.
READ MORE: Important Factors in 1031 Tax Exchanges
Many first time investors don't realize this is an option. This benefit was designed specifically for real estate investors to reinvest the gains they make on similar properties which they exchange for their old ones. While it may seem like a simple tax deferral procedure, knowing all the details before starting the process is vital to the successful completion of one.
Not just anyone can handle this type of transaction. The capital made on the 1031 exchanges should be dealt with through a qualified intermediary which is why Ranch - n - Home is here. This is due
For expert care in handling all your La Grande tax exchanges considering contacting Phil Burling with Ranch -n- Home. We know the area, the investments and the properties in Union County and can help explain all the details and make sure your 1031 tax exchange is handled properly.Please feel free to contact me anytime at 541-963-5450 or email me firstname.lastname@example.org or simply send me an email in the form below.