Atlanta 1031 Exchange 1031 Exchange - Main Page
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The tax benefits of a IRS 1031 Tax Deferred Exchange can be substantial for any investor in real property. The main idea of the 1031 Exchange is to be able to exchange real property (or properties) for "Like Property" (or properties) that may be for one reason or another more beneficial to the investor, without paying taxes on the gains from the sale of the original property.
Here are just some situations where an investor may consider the IRS 1031 deferred tax exchange for exchanging properties for other properties:
a The investor has enough equity in a property to be able to divide that equity into more than
one property in order to increase his platform for appreciation profits.
$100k rental home with $50k total equity
exchanged for
two other $100k rental homes with $25k equity in each (same $50k total investment).
With the same investment ($50k) the investor now benefits from annual appreciation
based on 200k platform rather than $100k - doubling his profits gained by appreciation.
a The investor has moved to a different state and wishes to have his rental properties within
the same city he now resides.
a The investor wants to exchange one investment property type for another investment
property type.
e.g. Investor wishes to exchange land (only significant source of profit is appreciation) for
rental property (profits from appreciation, plus depreciation & monthly positive cash flow).
a Two or more investors in a property wish to terminate their partnership. 1031 may be
used in a couple of ways here. The property is sold to a different individual and each
investor then purchases a separate exchange property. Or one investor sells
this ownership to the other investor, then the selling investor purchases a separate
exchange property.
All information believed accurate but not warranted.
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