How would you like to sell your property and not pay any capital gains tax on the profit? The IRS created a procedure that allows you to do just that.
It's called a "1031 tax-deferred exchange," and many people have never heard of it. But even small investors with just one property can take advantage of its benefits.
In the most basic of terms, a 1031 exchange allows investors to defer their capital gains tax if they exchange for, or purchase another "like-kind" property within a certain amount of time. The provision for like-kind real estate is pretty broad, allowing for the exchange of land, rentals, or business properties as investments or rentals.
Due to the lackluster performance of the stock market in recent times,
People see solid real estate investments as a safer, more logical place to put their investment dollars.
Taking proceeds from your sale and putting them into other investments like stocks and bonds, ends up leaving you with tax liabilities that put a big dent in your returns. Reinvesting your money into another property defers the tax burden, Inevitably preserving your profits from the initial sale.
Arizona Land wholesalers works hand in hand with its clients to take their proceeds from sales and reinvest them in viable land assets. We pre-qualify our properties to make sure that they are the best candidates for short-term appreciation in areas with highest growth potential. Let our experts help you reinvest your real estate proceeds in tax deferred land deals that make sense!
