Posted on Sep 17, 2017
The Best Advice on Taxes I’ve found

The Best Advice on Taxes I’ve found

Top Reasons Why You Should Consider the 1031 Exchange Program When it comes to taking advantage of the 1031 exchange program, there is no denying that you can obtain several benefits from it, but at the same time, it also comes with a lot of technicality stuff and complicated requirements, which means that you have to learn more about it first before actually considering it. If you’ve been stressed out as of late because of putting your money in an investment property which isn’t making enough profit or you simply just want a change of investment scenery, you obviously are already aware that an upgrade or switch to another property remains a decent option. However, everyone knows how difficult this kind of move would be since there are so many requirements that need to be fulfilled. Considering the fact that there are so many requirements and factors to consider, most notably the tax considerations and the technicalities linked to closing the sale, the one thing you, therefore, must take care of is preparing yourself to go through all of it. Luckily for you, there are a rather more efficient means of dealing with the tax situation. This is through the sale and purchase of a property by way of a 1031 exchange. Now if you aren’t aware of this option, then you must continue reading the reasons below on why you should consider it. 1 – You will not be required to pay capital gain taxes on the sale of the property.
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One of the main reasons why most people don’t really want to sell their old investment property and purchase a new one is because they know they could get stuck in paying the taxes and fees as a result of the sale. But by availing the 1031 exchange program, you can actually make a successful switch to a different property but with the same value, but this time, there no longer is a need to burden yourself with the usual taxes you need to pay.
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2 – You can pick from several options. Another practical reason to consider 1031 exchanges is the fact that there are various ways on how to conduct it. Today, the three most common options are simultaneous exchange in which you trade your property with another property on the same day, delayed exchange or when you sell your old property and find another within a specific amount of time, and reverse exchange, in which you buy a new property and then sell your old one later. 3 – It is easier to handle and deal with. Lastly, it’s not really just about avoiding the taxes, but more on realizing that there’s actually an easier way to buy an investment property and at the same time taking advantage of the tax deferral program.