Using the 1031 Exchange
What is the 1031 Exchange?
The short version: It’s a way to “exchange” property while deferring capital gains taxes. Internal Revenue Code §1031 allows you to defer capital gains tax when you sell one piece of profit-making real estate and use the proceeds to purchase other profit-making real estate. 1031 exchanges follow strict and complicated IRS rules. The Visintainer Group can put together the necessary experienced professionals (accountants, intermediaries and attorneys) required to safely take advantage of this beneficial tax code. The Visintainer Group also locates exchange properties for clients anywhere in the country.
Why lose on a property sale when you can gain with a 1031 Exchange?
Replacement Identification By the Numbers
The 3-property rule allows you to identify three potential replacement properties. You can purchase any or all of them to complete your exchange regardless of total value.
You may identify and purchase more than three properties as long as the total value does not exceed 200% of your original property.
You may identify any number of replacement properties as long as you purchase 95% of the value of all properties identified.