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1031
Tax Exchange Opportunities |
The best thing about Section 1031 is that its
benefits are available to large, medium, and small investors. The
general misconception is that this section only provides
opportunities to defer taxes on capital gains for owners of large
commercial properties. But the fact is that if one has a qualified
intermediary, then all kinds of investors can benefit from this
section.
There is no dearth of real estate firms that
provide an exhaustive list of 1031 properties. These firms generally
also provide the services of a qualified intermediary. There are
?simple gains calculators available on the Internet that can help
one to calculate the capital gains tax one would be able to save
through the tax exchange transaction of a real estate property. Over
the last one and one-half decades, there has been a phenomenal
growth in transactions that qualify under the tax exchange laws. The
IRS has also tried to make things easier by simplifying this law and
plugging loopholes. Those who have lost out on the opportunity of
utilizing this provision to save taxes can attend any of the
seminars, which are regularly held in various cities to explain how
to avail the opportunities under this section.
Prior
to 1990, this section was quite complex and difficult to understand.
But now, an individual can easily make out how this section
operates. It is still advisable, however, that before you go for
exchange you should consult your attorney or a qualified
intermediary. There are certain issues pertaining to the
partnerships, tenants-in-common, and transaction between spouses
that need to be taken care of before you make a final decision.
However, large numbers of properties are now available in the
markets that qualify under this section, and there are several firms
that are exclusively dealing with the sale and purchase of such
properties.
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