When you sell a real estate investment, you make capital gains, or at least that’s the hope. Those profits come at a price, though. You’ll owe taxes on the income, which depletes the money you earn. The 1031 Exchange or like-kind exchange is a way around the tax issue.
✔️ A simultaneous 1031 Exchange occurs when you sell a property and buy another on the same day. You transfer the profits from one property to another, never taking possession of the cash, which would trigger the tax liability.
✔️ A deferred 1031 Exchange occurs when you sell a property, and within 45 days find another property in which to invest.
If you’re interested in learning more about 1031 Exchange or if you have any questions, please reach out. We would be more than happy to help.
(305) 664-4966 | (305) 451-4078 | AmericanCaribbeanRE.com
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