How To Avoid Capital Gains Tax

How many times has April rolled around to find you staring at your tax returns wishing there was some way you could avoid the experience? While that's not advisable, there are some taxes, such as the capital gains tax, that can be avoided. When you sell a property, the capital gains tax is applied to the gain. The standard federal rate is currently 15 percent. When applicable state taxes are added, the numbers rise even higher.

However, there are steps you can take to defer the capital gains tax, freeing up more money for you to reinvest. A 1031 tax deferred exchange allows you to put the money you make from the sale of the property into a trust. You now have 45 days (from the close on the initial property) to locate and identify replacement properties to the IRS. You have 180 days maximum (from the close) to invest the money from the trust into one or more of the replacement properties.

At TM 1031 Exchange, we specialize in tax deferred property exchanges. Brokers and investors can use our services to find appropriate and potentially lucrative replacement properties. Our property surveys include thousands of 1031 properties located throughout the country, and we are constantly updating the surveys to include the very latest market opportunities.

We work with owners to ensure that our clients have access to even the hard-to-find properties that don't appear in public listings. However, our strategies are investor-appropriate, and our services are free to investors. Call 1-877-4-TM1031 or email us at info@tm1031exchange.com if you have any questions.