Our Tuesday Tip is an important one – especially now. While 1031 CORP. has always suggested you discuss your situation with a tax advisor to determine the best you to proceed, that suggestion is more important than ever now that the tax rates have changed. Completing a 1031 tax-deferred exchange can defer the capital gains and 3.8% Medicare Tax as well as the depreciation recapture but now exchanges can help keep you out of the 20% capital gains and dividend tax brackets and the new 39.6% income tax bracket. Exchanges can also help avoid the personal exemption phase out and the Pease Tax. (Summary of new tax bill)
