Tax Deferred Investing

Often, when individuals think of tax-deferred investing, individual retirement accounts and the like come to mind. However, the purchasing of property using a 1031 exchange can also qualify as a tax-deferred investment. More and more investors are recognizing the benefits of the 1031 tax-deferred exchange.

A wide variety of real-estate investment goals can be accomplished through exchanging properties in accordance with the Section 1031 tax code. These goals can include preserving equity, leveraging, diversification, relief from burdensome management requirements, and estate planning. Perhaps the most popular reason involves deferring taxes. A properly structured 1031 exchange can enable the investor to defer the full amount of capital gains tax, both on the federal and state levels.

Many investors choose to perform what is known as a delayed exchange. This is the most common exchange format and requires investors to use the services of a qualified intermediary (QI). The QI acts as a middleman, structuring the exchange deal and holding sale proceeds for the exchanger. With a delayed exchange, the investor is able to sell his or her original property first and identify suitable replacement property within certain time limits. Basically, potential replacement property must be identified within 45 days of relinquishing the original property, and the investor has 180 to close on the replacement property.

It is beneficial to have access to helpful tools and resources when you are looking for investment property. This is especially true when there are specific time limits for doing so. At TM 1031 Exchange, we provide investors hundreds of potential 1031 compliant properties along with tools and information valuable for to have a successful 1031 exchange. For help finding 1031 exchange property, phone us toll-free at 1-877-4TM-1031 or via e-mail here team@tm1031exchange.com.