Use 1031 Exchanges to Build Your Investments
When I first heard about 1031 exchanges I was really excited! I thought this was something new from the IRS. Then my father told me that he had used this tool. The US government in their wisdom want to encourage business and growth. Part of that idea was the IRS tax code 1031. This is where you can defer any gains or losses on an investment by reinvesting the proceeds in a like kind investment. Many people think this is a way to avoid capitol gains. This is not the case. You are deferring the gains until later. And you are allowed to exchange almost any investment… Real Estate, art or a race horse.
