Do you have a rental property and wish to sell it without paying hefty capital gains tax? Are you considering purchasing property that would generate a higher net income? A 1031 Exchange is a powerful tax-deferment strategy used by some of the most financially successful investors. Why? As Bay Area real estate values have increased, many investors think that today is the optimal time to exchange properties for stronger cash flowing properties across the country.
A 1031 Exchange allows an investor to “defer” paying capital gains taxes on an investment property when it is sold, as long another “like-kind property” is purchased with the profit gained by the sale of the first property. There are rules and timelines to follow, and working with an agent who is experienced and can connect you with resources outside of the Bay Area will provide successful investments. Contact me to learn how you can defer capital gains on the sale of an income property.