September 18, 2006

1031 Exchange Becoming More Popular

1031 Exchange Becoming More Popular  

 

Investors who want to cash in their chips on real estate bought as an investment — but defer the tax bill, in some cases forever — can do so by trading into another piece of property.  

 

This strategy isn't new, but it's enjoying a resurgence in popularity now because many investors believe that real-estate values have peaked in some markets. They want to lock in their gains and shift into other holdings without a big payment to Uncle Sam.  

 

The strategy is called a 1031 exchange, but it doesn't actually require you to swap property with another real-estate investor. You sell one property and buy another, carefully abiding by certain restrictions and time limits.  

 

Learn the secrets of 1031 exchanges…

 

 

Filed under Home Buying Tips, Most Recent Post, Taxes by

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