1031 Exchange

10 December, 2019

45 DAY WORRIES? Can’t find a 1031 exchange property?

VCM allows investors to 1031 exchange into their opportunities. As many investors may know, real estate can offer many unique benefits, including attractive tax advantages. However, how you invest in real estate can determine how many tax advantages you receive and the magnitude of those benefits. 1031 exchanges can help you defer taxes, and in some cases, defer them indefinitely.

A 1031 exchange gets its name from Section 1031 of the U.S. Internal Revenue Code, which allows you to avoid paying capital gains taxes when you sell an investment property and re-invest the proceeds from thee sale within certain time limits into a property or properties of like kind and equal or greater value.

The main benefit of carrying out a 1031 exchange rather than simply selling one property and buying another is the tax deferral. A 1031 exchange allows you to defer capital gains tax, thus freeing up more capital for investment into a replacement property.