Real estate investors use 1031 exchanges to reap the main benefit of deferring capital gains tax. Successful exchanges allow this deferment. They also allow the deferment of other taxes upon the sale of investment property. These savings can be huge. Bonus: there are five additional benefits of a 1031 exchange other than deferring taxes.
The deferment of taxes helps investors build more capital to invest. The benefits below present an additional attraction and investment flexibility. But, it is critical to understand that certain regulations apply. There are timing rules in which your property must meet. There are also limits on the types of property that qualify for an exchange. Internal Revenue Code section 1031 explains the allowances in great detail.
Savvy investors use 1031s for many reasons besides deferring taxes
Besides these five benefits of a 1031 exchange, additional advantages may suit your individual investing goals. Download our free 1031 Exchanges Made Easy Guide or contact Midland 1031 today. We perform hundreds of exchanges every year for our clients. We’ll help you determine if this investing maneuver is the right technique for you.
Midland is a qualified intermediary with Certified Exchange Specialists® on staff. We ensure all elements of your exchange are performed seamlessly and in compliance with IRS regulations.