SELL OR EXCHANGE?
How to Build Your Estate
There are many ways to build an estate. One avenue is through investing in real estate. Careful consideration is given when selecting what types of properties to include in your real estate portfolio. Likewise, the same consideration should be given when moving into another investment property. Unfortunately, many do not take advantage of another method left to them to help them grow their portfolio faster - the tax deferred exchange.
The tax deferred exchange allows an investor to defer paying capital gain taxes on the sale of investment real estate. Conversely, an investment that is sold without a tax deferred exchange can force the seller to pay up to 25% to 30% of their gain in taxes. If you're planning to purchase another investment property then it only makes sense to do an exchange, because it gives you more money to use on the purchase of your next property. Put your money to work for you by choosing to do a 1031 tax deferred exchange today.
Use our calculator below to determine how much capital gain taxes you can defer by doing an exchange: