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There are currently some 15 million Americans who own real estate investment property, and more and more of them are discovering the advantages of using 1031 tax-free exchanges for deferring capital gains taxes when they sell. But, how can you turn your investment into a home?
‘In this world’, said the great Benjamin Franklin, ‘nothing is certain but death and taxes’. While modern medicine continues to work on a cure for mortality, 1031 exchanges offer a valuable mechanism against the foibles of the taxman.
Real estate investment opportunities vary widely as do the different
classifications of property within the definition of real estate. One can invest in real estate in the form of residential, commercial, industrial, and rural just to name a few.
Section 1031 of the Internal Revenue Code contains arguably one of the most powerful provisions of the tax code for real estate investors… the 1031 tax exchange.
A 1031 exchange can be a great benefit for investors. Learn what they are, and how to easily overcome some obstacles to use this tax deferral to your advantage.
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