Welcome to 1031 Exchange Team
Information About 1031 Exchange Properties, 1031 Exchange Rules, 1031 Exchange Planning and more…
1031 Exchanges & Tax Savings
Section 1031 of the Internal Revenue Code provides one of the best tax strategies available for deferring the capital gain tax you would otherwise pay on the sale of your investment property: the 1031 Tax Deferred Exchange.
By using an exchange to defer the capital gain tax, instead of a traditional sale, you would have a great deal more equity to reinvest in another property.
Our mission is to provide you with expert 1031 exchange consulting, strategic planning and solutions to expand and enhance your real estate investments. We will coordinate with your exchange accommodator, tax and legal advisers, closing agents and lender to ensure accuracy and the successful completion of your exchange transaction.
How Much You Can Save With 1031 Exchanges
FIRST CHOICE for real estate investors living in California, and other high tax rate states, is using the benefits of a 1031 Exchange instead of a traditional sale!
Significant changes made to the Federal and State Tax Codes mean that now a California real estate investor, who sells a $1 million investment property, will likely face the following tax consequences:
- 20% capital gain tax rate (Federal)
- 3.8% Medicare Surcharge (Federal) (buried in the Obamacare legislation)
- 13.3% California Franchise Tax (top California tax rate for individuals)
- 25% Depreciation Recapture (Federal)
Recently, we have seen that California real estate investors, and those in other high tax rate states, have been flocking to the 1031 Exchange strategy. Thus keeping their hard-earned money working for them rather than paying these outrageous taxes.
HOW YOU CAN BENEFIT WITH A 1031 EXCHANGE…
Keep your money working for you—Rather than pay capital gains taxes, use the money to purchase more investment property
Compound your wealth—Maximize your returns by moving your equity to the most advantageous investments available.
Eliminate troublesome properties—In order to avoid anyextensive management and maintenance problems, sell older properties in exchange for new triple net leased properties.
Diversify your investments—Exchange an unwanted property into multiple replacement properties to expand your portfolio.
Relocation—When you move your home or business to a new location you can move your real estate investment too.
Increase your cash flow—Rid your portfolio of non-income producing land and exchange it into income-producing property.
Solution to partnership problems—With proper advance planning, property owned by partners can be exchanged and the partners can go their own way.
Consolidation—You can take several properties, perhaps in different states, and consolidate your holdings into one property.
Transfer a greater estate to your heirs—Upon your death, your heirs receive a stepped-up basis, so the tax is never paid.
A new depreciation basis—Exchange a fully depreciated investment for a more valuable asset.
