528 College Road,
At some point in their lives, most real estate investors have heard of the term 1031 exchange. It's an option that allows real estate investors to defer paying taxes on the sale of a property if they reinvest the proceeds in a similar or like-kind property, there are several benefits and drawbacks of a 1031 exchange. In this article, we will explore this popular strategy and discuss its pros and cons.
A 1031 exchange can be a useful tool for real estate investors who want to defer paying taxes on the sale of a property and reinvest the proceeds in a similar or like-kind property. However, it is important to understand the benefits and drawbacks of a 1031 exchange before deciding to use this strategy. While it can provide tax benefits, portfolio diversification, and increased cash flow, it is subject to stringent rules and regulations, limited flexibility, and higher costs.
Click here to schedule a free, no obligation financial review or click here to if you have a question for our team of CFP® Professionals.