Aside from the complete deferral of capital gains taxes, there are numerous other 1031 advantages, including non tax advantages for exchanging:
GREATER PROFIT POTENTIAL
With an exchange the investor has greater equity because the taxes not paid will be available for investments.
FREEDOM FROM MANAGEMENT
Exchange from property which requires somewhat intense management to one which is a professionally managed, triple net leased property
POTENTIALLY INCREASED CASH FLOW
Exchange from non income or low income producing property such as raw land or an older apartment building to a property which potentially generates more cash flow.
DIVERSIFICATION
Exchange one large property into several smaller properties through TIC ownership in order to obtain location diversification, faster appreciation, and increased cash flow.
FUTURE TAX SAVINGS
Depreciation deductions can be renewed on increased when you exchange to a higher value property.
RISKS
It is critical to understand the rules and timing associated with a 1031 Exchange to ensure your exchange will qualify. Working with an experienced Qualified Intermediary (Accommodator) and consulting with your Tax Advisor is highly recommended.
1031 EXCHANGE EXPLAINED
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PROPERTY THAT QUALIFIES
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REPLACEMENT PROPERTY CRITERIA
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TAX SAVINGS AND ECONOMIC BENEFITS
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ADVANTAGES OF EXCHANGE
SECURITIES OFFERED THROUGH Private Asset Group, Inc. (PAG), A member of FINRA/SIPC. Frank Dunn is securities licensed in CA, CT, ID, IL, KS, ME, MT, NC, NJ, NM, NY, OR, PA, TX, UT, VT, WA, WI, WY. 1031TaxSavings.com and its parent company Capstone Financial Services, LLC are independent and not affiliates of PAG, Inc.
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This site has been prepared for informational purposes only and does not constitute an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investment strategy. Such offers may only be made by written prospectus and only in a jurisdiction where the security is duly registered or exempt from registration therein. The information contained herein was current as of publication but is subject to change without notice. The information contained herein was obtained from sources believed to be reliable; however, we make no guarantee regarding its accuracy or completeness. Furthermore, due consideration should be given to risks associated with real estate ownership such as market, interest rate, and default risks.
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