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1031 "LIKE-KIND" EXCHANGES
"LIke-kind" Property
To qualify as "like kind" property for a 1031 exchange the
investor's relinquished and replacement properties must be
property that has been and will be held for productive use in
the investor's trade or business or for investment.
AGRICULTURAL LAND
MIXED-USE
RETAIL
APARTMENTS
MANUFACTURING
RENTAL HOUSES
DUPLEX/FOURPLEX
OFFICE
VACANT LAND
In addition to deferring the capital gain tax, tax deferred
exchanges provide the investor with a wide range of non-tax
opportunities to suit the investor's portfolio:
Reposition Assets
Change Property Types
Increase Leverage
Increase Depreciation Deduction
Reduce Management Obligations
Provide for Estate/Retirement Planning
Allow for relocation
Improve cash flow
Achieve property consolidation or diversification
Eliminate or create joint ownership
Defer phantom gain on problem properties
Construct improvements on a property
1031 Exchanges provide investors with one of the best tax
strategies for preserving the value of an investment portfolio.
By using an exchange the investor is able to defer the
recognition of capital gain taxes that would otherwise be
incurred on the sale of investment property. The investor can
then use the entire amount of the equity to purchase
substantially more replacement property. To qualify as an
exchange the relinquished and replacement property must be
qualified "like kind" properties and the transition must be
structured as an exchange.
Santos Associates, FEDERALLY AUTHORIZED TAX
PRACTITIONERS, can help you with your accounting, tax
and financial planning needs. Call today for an appointment &
consultation. We are not attorneys, we can refer competent council
upon request.
