Benefits of a 1031 Exchange

    • Immediate tax deferral
    • Time value of deferred gain
    • Greater buying power
    • Greater selling power
    • Increased income potential
    • Less management responsibility
    • Diversification of investments
    • Consolidation of properties
    • Relocation of investment property or business
    • Expansion of business location
    • Opportunity to depreciate higher basis replacement property
    • Tax may be forgiven upon death of Taxpayer (heirs may receive stepped up basis)
    • Defers capital gains, depreciation recapture and the 3.8% Medicare Tax
    • Help keep one out of highest tax bracket, prevent AMT and the phaseout of personal exemptions.