Besides the immediate tax deferral, the real power of 1031 exchanges are in the many short and long-term investment and business objectives they can help your clients accomplish, including:
Defers capital gains, depreciation recapture and could help avoid the 3.8% Net Investment Income Tax and Alternative Minimum Tax (AMT) so all of your other income is taxed at a lower level
Time value of deferred gain allows your deferred gain to keep appreciating
Greater buying power
Increased cash flow
Less management responsibility
Diversification of investments (types and locations of properties)
Consolidation of properties
Business relocation or expansion
Exit strategy for business owners
Acquisition of property to eventually be converted into a personal use property
Estate preservation as tax may be forgiven upon death and heirs receive stepped up basis
The 1031 team brings over 150 years of combined exchange industry experience and has facilitated thousands of exchanges. Based in Collegeville, Pennsylvania and Bend, Oregon, our exchange experts are ready to answer your questions, guide the process, and facilitate your exchange.
• Exceptional Security of Funds