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1031 Exchange Benefits

If you own commercial property, planning ahead to complete a 1031 Exchange at the time of sale can be one of the smartest moves you make.

- Capital Gains Tax Deferral

- Higher Return On Equity

- Property Appreciation

- Build & Transfer Wealth

To make sure you get the full benefit of a 1031 Exchange, its important to learn all that you canprior to even beginning the sales process on your current property if possible. There are rules and regulations in place that determine which properties we can show you when you first contact us. However, once we get to know each other, you will have full access to future available products.
Capital Gains Tax Deferral

Completing a 1031 Exchange gives you increased purchasing power by deferring (sometimes indefinitely) any capital gains realized on the sale of your investment property. Instead of paying capital gains tax, you are able to use the entire proceeds of the sale of your property to purchase more (or better) investment property.

Heres an example of how this tax deferral strategy can help you preserve and build real estate wealth.

Mr. Smith purchased a single-owner residential property for $50,000 fifteen years ago. Today, the property is completely paid for and has a depreciable basis of approximately $23,000.

Mr. Smith is looking to sell the property and is exploring his reinvestment options. If he sells the property today for its market value of $200,000, he would have approximately $180,000 in equity after paying closing costs and commissions. His capital gain would be $157,000 (the difference between the adjusted sales price and his basis).

If Mr. Smith does not complete a 1031 Exchange, he would be obligated to pay the capital gains tax on the entire $157,000 which leaves him as much as $77,000 less to invest. If he completes a 1031 Exchange, he will be able to use the entire $180,000 to purchase a new investment property.

If you like the concept of keeping your money working for you, contact us today.



Securities offered through Steven L. Falk & Associates, Inc., Member NASD-SIPC
3245 Elk Clover Street | Las Vegas, Nevada 89135 | 702.240.0174 office

This information is neither an offer to sell nor a solicitation of an offer to sell any security and is being supplied for information purposes only. All investments have inherent risks; TIC investments also have risks, including those common in real estate investment. Potential risks relating to each investment property are disclosed in a private placement memorandum available to ACCREDITED INVESTORS ONLY that must be read by the investor prior to making an investment decision. The information provided on this website is not intended as a substitute for qualified legal and/or tax advice.

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