Trade Up and Defer Taxes
If you have owned a rental property for five years or more, chances are pretty good that you could benefit in a number of ways by trading your income property for a higher valued property using a 1031 tax deferred exchange.
A 1031 exchange was designed for the purpose of trading up in value for a like property, while deferring the gain and the capital gains tax. In addition to the tax benefits of a 1031 exchange, additional benefits include better cash flow, a new higher depreciation schedule, and increased potential for appreciation.
You are simply taking advantage of the greater equity in your income property to buy a more valuable property without the tax consequences!
Below are links to more details regarding 1031 Exchanges, please review to get a better understanding of how we can use this valuable method of acquiring more wealth for you.
Overview How It Works Benefits Sample Exchange Rules Myths FAQ's