1031 EXCHNAGE INFORMATION
A
1031 Exchange, named after the IRS code, allows you to sell
investment real estate and replace it with other investment
real estate without creating a taxable event.
Many investors don’t realize that taxation on the sale of
investment property does not have the same tax advantages
enjoyed when selling their principal residence. Profits
are often substantially affected by tax consequences. With
a 1031 Exchange, you can defer payment of the tax normally
due on the sale of your property that has a taxable gain.
There are many benefits to performing an exchange instead
of a sale and new purchase. It can make more funds available
for the new purchase by deferring any tax payments that
would have been due. It can also help you with your investment
income. By allowing you to sell investment properties that
aren’t giving enough return and use the non-taxed gain to
purchase another property that produces more cash flow,
you can greatly increase your income.
To qualify for a 1031 Exchange, you must trade real estate
that is held for business or investment purposes for other
like investment property. 1031 Exchanges can not be used
in the sale of your primary residence or second home.
To qualify, you must use a Qualified Intermediary, who in
turn buys the next property you have chosen. You are not
required to exchange all of your cash from the sale of the
first property into the purchase of the second. However,
if you take proceeds from the first sale, each dollar taken
is subject to capital gains tax. To avoid the tax, you must
rollover the entire gain into the new property. You may
also exchange one property for several others or vice versa.
It does not have to be one for one.
For more information on 1031 Exchanges, give us a call at
866-542-2912, email
us
or contact:
Bayview
Financial Exchange Services LLC.
www.bayview1031.com
Russell Marsan, CES
Certified Exchange Specialist - 866-903-1031
Asset
Preservation, Inc.
www.apiexchange.com
Bill Angove - 800-282-1031 ext.314