Have you been dreaming of buying Bozeman Real Estate, but not sure how to make it happen? The Like-Kind Exchange under IRC Code 1031 might be the ticket to get you there.
The oldfangled saying, “Nothing is certain but death and taxes,” is only half true for a discerning taxpayer who is planning the sale of an investment or business property. Since capital gains tax on your profits could run as high as 15% to 30% when state and federal taxes are combined, why not take the necessary steps to avoid this loss? A big tax bite could wipe out money you need for future investments.
The 1031 Exchange has been cited as the most compelling wealth building tool still available to taxpayers. It has been a major part of the success strategy of many real estate investors. Taking its name from Section 1031 of the Internal Revenue Code, a tax-deferred exchange allows a taxpayer to sell income, investment or business property and replace it with a like-kind property.
Capital gains on the sale of this property are deferred or postponed as long as the IRS rules are meticulously followed. This is a wise tax and investment strategy as well as an estate planning tool. In theory, an investor could continue deferring capital gains on investment property until death, potentially avoiding them all together. Learn more about Like-Kind Exchanges Under IRC Code 1031 here.
Interested in learning more and discussing your 1031 Exchange options? Contact Everdawn today.