Avoiding Capital Gains Tax
Capital gains tax could easily be called investor's kryptonite. The taxes have stopped many an investor cold in their tracks when they realize the amount of profits from a sale that they actually have to give to the government. However, there are ways of avoiding capital gains tax that will enable you to hold onto your money and put it right back into another piece of property. At its most basic, a 1031 tax deferred property exchange serves as a chance for investors to delay paying capital gains tax. However, there are other advantages to the exchange, as well. By deferring capital gains taxes, investors will generally have greater financial resources to put into their next investment. Never eager to simply give money away, the IRS has established strict criteria for 1031 exchanges. Within 45 days of closing on the initial property, you must identify your candidate properties and notify the IRS. You can generally choose up to three potential exchange properties. The entire process must take place within 180 days of the initial closing or standard capital gains taxes will apply. At TM 1031 Exchange, we work with brokers, investors, and owners to ensure that serious investors are matched with the property that suits their current financial situation and will help them achieve their short and long-term goals. We offer access to detailed information on properties that aren't available to the general public. Start your search today. Contact us by calling our toll-free number, 1-877-4-TM1031, or emailing team@tm1031exchange.com.
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