Real Estate Investor Information
1031 Exchange
Do you own a piece of property that has increased in value? Is it your intent to sell it in order to invest in another piece of property? If so, think again. A sizable amount of the profit you realize on the sale could very well disappear to the IRS in capital gains tax. That means less money to invest in your new venture. One alternative that may allow you to avoid the capital gain tax is an IRC1031 Exchange.
A 1031 Exchange refers to IRS Code Section 1031. This Code Section outlines rules that allow you to exchange one piece of property for another "like-kind" property. Thus, allowing you to defer the tax that would otherwise be payable.
Demystifying the 1031 Exchange
Self-Directed IRA For Investing in Real Estate
When it comes to the tax impact from investments in real estate, generally the most an investor can hope for is long-term capital gain treatment or an occasional 1031 exchange. Moreover, many individuals are tired of the stock market and would like to place their IRA into the potentially higher-yielding world of real estate investing. There is an option with incredible benefits that is becoming more and more popular and common .