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At Layman & Nichols, we often work with clients on tax deferred exchanges. In this video, Mac Nichols talks about the benefits of a 1031 exchange, often known as a tax deferred exchange.
These benefits include:
• allows you to sell real estate or other property and defer the capital gain by reinvesting it in other property, therefore
• give you more money to invest, since you don’t have to pay tax on the sale of the property
What properties qualify? They have to be held for business or investment purposes. The exchange also has to satisfy a “like-kind” requirement. In order to qualify for a 1031, the transaction must be structured as an exchange, rather than a simple sale and repurchase. For this, you need a Qualified Intermediary (QI) who helps you to complete the transaction.
Are you interested in beginning a 1031 Exchange? Contact us today to find out how we can work with you.