What is a 1031 exchange?
A 1031 exchange is an IRS process that allows you to save 30- 40% in taxes on the profits from the sale of your property. You must hire a 1031 Accommodator (that’s what we are) to make sure you are following the protocols correctly.
Let’s see how using an exchange worked out for Paul
Paul bought this house for a price of $100,000.
Sold For $300K
After setting up his exchanges, Paul sold for $300,000.
The exchange provided a tax savings of 60,000 on his profit!
Two $150K Purchases
Paul reinvested all of his profits into new, no-management investments.
These investments make him twice the monthly rent, without paying a cent in taxes!