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 qualified intermediary, 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!