1031 TAX EXCHANGE

A POWERFUL TOOL THAT CAN WORK TO YOUR

FINANCIAL BENEFIT

When you, an investor, sell your interest in an investment property and buy another, you may face LARGE capital gain taxes.  However, property that qualifies under Internal Revenue Code Section 1031 is treated differently. Section 1031 of the Internal Revenue Code allows you to roll the gain from the sale of your old property over to your new property without paying taxes. To qualify for this great advantage, both the old property and the new property have to be properly held for investment or used in a trade or business. If you meet this requirement, you could sell your duplex and buy an office building, or an apartment building, a warehouse or even bare land   - - you do not need to buy another duplex.

THE RULES:

The property or properties you are acquiring must be identified within 45 days of the transfer of the first relinquished property.

The acquisition of your replacement property must be completed by the earlier of 180 days from transfer of the relinquished property or the due date of your tax return for the year in which the relinquished property was transferred.

To be fully tax-deferred, the property or properties you are acquiring must have value and equity equal to or greater than, the relinquished property.