1031 Tax Exchange Explained

Internal Revenue Code provides that no gain or loss shall be recognized on the exchange of commercial real estate is held for productive use in a trade or business, or for investment. A tax-deferred exchange is a method by which a real estates trades one or more relinquished commercial real estate for one or more replacement commercial real estate of like-kind. Such an exchange allows the issuer to defer the payment of federal income taxes and some state taxes on the transaction.

The theory behind internal revenue code is to allow the real estates to reinvest the sale proceeds into another commercial real estate, foregoing any economic gains that may have been realized from the sale. If you have recently sold, or are thinking of selling commercial real estate, we can assist in matching you with a qualified 1031 tax realtor. A 1031 tax realtor can help you explore your 1031 tax exchange options. Contact us today for a free consultation.

Benefits of a 1031 Tax Exchange

Benefits to a 1031 tax exchange include:

1031 Tax Exchange Benefits
  • Deferred capital gains taxes

    1031 Tax Exchange Benefits
  • The potential to yield more cash flow on an annual basis

    1031 Tax Exchange Benefits
  • More money to reinvest in a newer commercial real estate due to zero capital gains taxes calculated on the old commercial real estate

  • Consolidate your investment portfolio by electing a 1031 tic exchange

    1031 Tax Exchange Benefits
  • Achieve your investment goalsThe benefits of investing in a 1031 tic structured commercial real estate are definitely worth investigating. You have the ability to:

  • Invest in larger, institutional grade properties.
  • Diversify Your commercial real estate Portfolio

    1031 TIC Benefits
  • Diversify across different types and sizes of commercial real estates as well as geographic markets, potentially increasing both the value and safety of your commercial real estates.

    Completing a 1031 tax exchange with a 1031 tic interest ownership in a commercial real estate allows real estates not only to defer their capital gains taxes, but also to upgrade their commercial real estate into larger, institutional-grade commercial real estate.

    If you are interested in learning more about 1031 tic exchanges available to you, contact us today.

    1031 Real Estate

    In general, the 1031 tic opportunities we offer are institutional grade commercial real estate. Such commercial real estate often have tenants subject to long term leases with major credit tenants.

    Commercial Real Estate are in various locations throughout the U. S. and include office, retail, industrial and multi-family commercial real estate types.

    The demand for high quality 1031 tic commercial real estate is so strong that the offering period is often quite short. If you have any questions regarding your particular needs and circumstances, contact us.
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    Sunday, August 01, 2010