Most real estate sellers are concerned about their windfalls from taxation. It is not an accident most investors roll their profits into new purchases by transferring their wealth via 1031 exchange. The base strategy is to close principal property sale and then close on your chosen replacement property fairly quickly. This will allow the investor to defer taxes owed until the future sale of replacement property. A sound plan to protect investor equity.
Testimonial below is from a Seattle brick n motor entrepreneur regarding a recent 1031 exchange recently completed.
100% of the tax that would have been due on the sale, is deferred into the newly purchased property. So, the tax would be due when the new property is sold years down the road, unless a 1031 is done then also.
More than 3 properties can be identified as potential replacement properties. Working with reputable professionals is key to success in wealth protection. Contact Sam The real estate Tax Man for more expert advice regarding taxes and real estate.
For many sellers their real estate investments maybe encroaching or even past reasonable life span of a structure. It maybe unwise to continue with maintenance and improvements without considering ‘best-use” of property. Best-use may indicate knocking down existing structure and building maximum allowed by zoning codes. Definitely a job for professionals like those members you will find at Victory Lane Brokerage.