1031 Tax-Deferred Exchanges

Investing for Dummies: Investing in San Diego Income property

Paying Capital Gains Tax on the sale of your San Diego income property could defeat the purpose of your investment strategy. If you have to give back the profit to Uncle Sam, consider this:

You can defer the entire gain by purchasing a property (or entity used for business) of equal or greater value ~within a specific time frame and adhering to specific rules~. That’s right! The I.R.S. says go ahead, sell your income property and if you do this within the guidelines we have stipulated “you don’t have to pay us a dime”. Well, you may be thinking “What if I don’t want to be a Landlord anymore, I have other areas of my life that keep me busy? I’m sick of all the headaches. If I sell my income property, then what?”

Here are some “1031 Tax-Deferred Exchange”  ideas :

Purchase a condo for your child to live in while they go to college.

Buy a future retirement home in an area of your choice (U.S. only) and rent it out until you are ready to retire.

Buy into a TIC investment.

Downsize your life to a multi unit dwelling,live in one apt. and you will be able to defer a percentage of the gain.

Buy a Farm

Buy a vacation condo/house you use less than 2 weeks/year. (this does not include a time share).

Purchase raw land.

Purchase a Corporate Jet used for your business.

There are many more legal ways to reinvest the gain from your income property using a 1031 Tax-Deferred Exchange.

Disclaimer: Always consult with your CPA before undertaking a 1031 Tax-Deferred Exchange or other tax strategies.

 

 

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