When it comes to taxes, a lot of people don’t become familiar with them beyond the meaning of a 401(k). However, Section 1031 is becoming a more common topic among realtors, investors, title companies and people ready to learn more about real estate investing. In fact the term 1031 has become a common phrase among people ready to make great tax-deferred investments. It is important to note that 1031 is not restricted to just real estate. However, it is clearly a common topic concerning real estate. A 1031 exchange is also called a Starker or a like kind exchange. It is the swap of an investment asset for another. Most investment asset swaps are taxable as sales. If you are able to come within 1031, you will enjoy limited tax due or no tax due per exchange. While there are many benefits to this type of exchange, it is important that you seek legal services for 1031 exchange in Davenport IA.
Become a Savvy Investor
Once you learn more about 1031 tax-deferred exchanges you will see that there are many savvy investors that take advantage of it. There are actually many benefits to this type of tax exchange including being able to tremendously increase purchasing power with the benefits of leverage, diversification, consolidation, increase cash flow, and management relief.
Acquire More Valuable Property
One of the main reasons investors prefer to use a Starker exchange is the ability to gain investment properties is valuable. They are able to utilize the funds that would’ve been used to pay the IRS in taxes, so they can in turn increase down payments as well as acquire additional replacement property. When you turn to legal experts, they can guide you when it comes to using a 1031 tax deferred exchange that will greatly benefit you.
