1031 Exchange Solutions: Before you decide to purchase, sell or exchange any of your properties you need to know how well they are performing and how this decision will affect your personal investment goals. SIFF will analyze your portfolio to see how well your properties may or may not be performing. This gives you, the investor, valuable insight and the information necessary to choose the appropriate action that will ultimately increase your returns.
The foundation of 1031 exchange rule by the IRS is that the properties involved in the transaction must be “Like Kind” and Both properties must be held for a productive purpose in business or trade, as an investment.
If we determine that a 1031 exchange will increase your income, lower your expenses and provide you a better investment, SIFF will coordinate the entire transaction to ensure you receive the best service, pricing and investment options.
1031 Exchange Definition
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.
So to say it in simple terms, sales are taxable with the IRS and 1031 exchanges are tax deferred. Utilizing a 1031 exchange can provide tremendous leverage and increased income all while having no tax burden when you sell your property.