Investment Property Exchanges

When you buy an investment property, there are two important financial goals to consider. You will want a property capable of producing rental income. When you sell, you hope that the property will have appreciated enough that you will earn a good profit on your investment. If your property has enjoyed a healthy appreciation, you may need to do some careful planning to avoid paying out most of your profits in the form of capital gains taxes.

When selling your primary residence, you may be able to defer your capital gains taxes when you buy your next home. This does not apply, however, to investment property. If you sell one property then purchase another, the taxes will be due for the year the sale occurred. On the other hand, if you arrange to trade one property for another, you may be able to defer the capital gains tax. This is called a 1031 Tax Deferred Exchange.

It is not as complicated as it sounds! Many real estate agents and attorneys specialize in helping their clients put these kinds of transactions together. You don't have to trade buildings with the people buying your property. The property you trade may belong to a third party, and your buyers need only cooperate with the closing attorney to make the transaction work.
 
Would you like additional information about exchanges? I can help. Don’t hesitate to e-mail, call me directly or fill out the form below..

ADVANTAGE JANES REALTY cooperates fully with all other real estate companies and we have access to all available listings in our area.  As experienced Real Estate professionals, we will provide the dedication, honesty, and outstanding service that each client deserves. I look forward to working with you.