1031 Exchange – Huh?

What exactly is a 1031 Exchange?   Why do you need to know about this? Isn’t this market a bad time for this kind of strategy?

In a nutshell:

 A 1031 exchange, otherwise known as a tax deferred exchange is a simple strategy and method for selling one property, that's qualified, and then proceeding with an acquisition of another property (also qualified) within a specific time frame. The logistics and process of selling a property and then buying another property are practically identical to any standardized sale and buying situation, a "1031 exchange" is unique because the entire transaction is treated as an exchange and not just as a simple sale. It is this difference between "exchanging" and not simply buying and selling which, in the end, allows the taxpayer(s) to qualify for a deferred gain treatment. So to say it in simple terms, sales are taxable with the IRS and 1031 exchanges are not. US CODE: Title 26, §1031. Exchange of Property Held for Productive Use or Investment

This is absolutely the right time to know about such investing transactions! With all of the opportunities that exist right now – this could be the exact way to step up your investment portfolio.     How can you do that if you don’t know what it is or what it is about?

Greg Smith, Esq. with Investment Property Exchange Services

Will share with us the mysteries of this unique and little understood real estate investment tool.GDREIA comes through again. Another tool for your toolbelt!