By chris
Most people don’t know what 1031 exchange companies are, but they are essential for those who own rental properties. These companies facilitate the sale of property in one location and property purchase in another area without any capital gains taxes or penalties. Here’s everything you need to know.
Buy and Sell Real Estate
Exchange organizations do the work of finding and purchasing new real estate so that you don’t have to. They see similar or even identical properties to your current one, allowing for a seamless transition between locations.
Help Avoid Paying Hefty Capital Gains On Investment Properties
These companies are experts at exchanges, which involve the buying and selling of the same property. This allows no capital gains tax to be paid on these transactions because they aren’t considered a sale but rather an exchange between two properties.
No Set Timeframe When They Must Happen
1031 exchanges can happen over short periods, or they can take place in stages. They can also assist investors in structuring a 10-year tax deferral by allowing for multiple sales with reinvestments, or they can qualify for an even longer timeframe, like 15-20 years.
1031 exchange companies are excellent at setting up 1031 exchanges for investors, and they can do so in various ways.
