1031 Tax Deferred Exchanges
You may have heard “1031 exchange” or “tax deferred exchange” in conversations among land professionals and attorneys or maybe your accountant or tax man.
As a landowner you can participate in an IRS 1031 Exchange with little expense or added trouble and receive great benefits. Yes, there are a few more documents to sign and you will need the help of a professional to make sure the transaction meets all IRS requirements. In most cases, the property you want to trade out of is marketed in the same manner as any other real estate sale. The replacement property you want is acquired through normal negotiations. A 1031 Exchange is subject to a definite time limitation. Personal residences usually do not qualify, as the trade or exchange property must be held for business or investment purposes.
By doing your homework and working with the land professionals at Buy A Farm Land and Auction Company, you can avoid paying the IRS capital gains tax of up to 20% and get ownership of the real property you want.
If you are considering a sale of investment property and want to exchange into other real estate, Buy A Farm will be glad to sit down with you, your attorney or accountant to discuss how we can design a team approach to accomplish your goals.
Now Reverse Exchanges are possible. Buy property before you sell.
Before doing a 1031 Tax Deferred Exchange, you should always seek legal and tax advice from your attorney or accountant.