{"id":2622,"date":"2016-06-23T10:58:47","date_gmt":"2016-06-23T14:58:47","guid":{"rendered":"https:\/\/clintaford.com\/?p=2622"},"modified":"2016-10-25T16:01:02","modified_gmt":"2016-10-25T20:01:02","slug":"1031-exchange-benefits","status":"publish","type":"post","link":"https:\/\/clintaford.com\/1031-exchange-benefits\/","title":{"rendered":"1031 Exchange Benefits"},"content":{"rendered":"

WHAT IS A 1031 EXCHANGE?<\/b><\/h2>\n

\"Real<\/a><\/p>\n

According to Section 1031 of the IRS Revenue Code, no gain or loss will be recognized in the sale of a property held for business or investment purposes. A 1031 exchange allows you to defer a capital gains tax when exchanging one like-kind property for another. If utilized properly, the 1031 exchange process can be an effective wealth-building tool, potentially allowing you to <\/span>“swap till you drop”<\/span><\/a> as you continue to make good on your investments in new properties. <\/span><\/p>\n

REQUIREMENTS<\/b><\/h2>\n

There are several stipulations that govern a 1031 exchange. <\/span><\/p>\n

    \n
  1. The property must be a business or investment property, not a personal residence.<\/span><\/li>\n
  2. You may only utilize this benefit if you are purchasing a like-kind property. That means it is another investment property within the US. A 1031 exchange may not apply to other kinds of property, such as stocks and bonds, securities or debts, and partnerships. <\/span><\/li>\n
  3. Time is of the essence. You have <\/span>only 45 days<\/span><\/a> from the time you relinquish your property to identify and close on the new property in order for a 1031 exchange to be valid. The IRS very rarely grants extensions on this deadline.<\/span><\/li>\n<\/ol>\n

    BENEFITS<\/b><\/h1>\n
      \n
    1. More money to invest. <\/b>A 1031 exchange can increase your purchasing power. Instead of paying a capital gains tax, you can use that money to invest in property of greater value. <\/span><\/li>\n
    2. Reduction in maintenance costs. <\/b>If you own a property that is associated with <\/span>significant maintenance costs<\/span><\/a>, you can save money by exchanging it for a like-kind property that does not incur these expenses.<\/span><\/li>\n
    3. Wealth accumulation. <\/b>If you utilize the 1031 exchange for each purchase, you can accumulate wealth over time. Your capital gains tax can be as much as 15%, so postponing it multiple times can add up to significant savings, which eventually can be passed on to your heirs.<\/span><\/li>\n<\/ol>\n

      PLAN AHEAD<\/b><\/h1>\n
      \"Sharing<\/a>
      Sharing good news. Cropped image of two young businessmen in smart casual wear talking and smiling while sitting on the window sill in office<\/figcaption><\/figure>\n

      It\u2019s essential to plan carefully if you want to take advantage of a 1031 exchange because of the many guidelines and regulations which can affect it. A 1031 exchange requires a qualified intermediary to handle the sale. This intermediary will assist you in navigating the many components of a successful 1031 exchange. Make sure you seek advice from a financial planner to reap the full benefit of your 1031 exchange. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

      WHAT IS A 1031 EXCHANGE? According to Section 1031 of the IRS Revenue Code, no gain or loss will be recognized in the sale of a property held for business or investment purposes. A 1031 exchange allows you to defer a capital gains tax when exchanging one like-kind property for another. If utilized properly, the […]<\/p>\n","protected":false},"author":5,"featured_media":3551,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"image","meta":{"footnotes":""},"categories":[20],"tags":[83,72,82,73],"_links":{"self":[{"href":"https:\/\/clintaford.com\/wp-json\/wp\/v2\/posts\/2622"}],"collection":[{"href":"https:\/\/clintaford.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clintaford.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clintaford.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/clintaford.com\/wp-json\/wp\/v2\/comments?post=2622"}],"version-history":[{"count":0,"href":"https:\/\/clintaford.com\/wp-json\/wp\/v2\/posts\/2622\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/clintaford.com\/wp-json\/wp\/v2\/media\/3551"}],"wp:attachment":[{"href":"https:\/\/clintaford.com\/wp-json\/wp\/v2\/media?parent=2622"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clintaford.com\/wp-json\/wp\/v2\/categories?post=2622"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clintaford.com\/wp-json\/wp\/v2\/tags?post=2622"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}