If you′re a real estate investor, the IRS′s 1031 tax–free exchangeis one of the best tools available for making money and saving ontaxes. Simply put, it allows you to roll over the profit from onereal estate investment into a new investment without having to paycapital gains taxes. In this way, you can grow your wealth intoday′s real estate market without being pummeled by taxes when yousell.
In fact, the tax–free exchange might be the greatest investmenttool of all time. Unfortunately, not enough investors know how touse this legal and profitable loophole to their best advantage.There′s no doubt that the IRS rules are confusing, but that′s noexcuse for letting free money pass you by. In this comprehensive,straightforward guide, successful real estate investor JackCummings uses his own experiences and real examples from hisown portfolio to explain every aspect of the tax–free exchangefor investors just like you.
You′ll learn how to minimize your tax losses on individualproperties, as well as how to multiply the effect of the tax–freeexchange by continually rolling profits over into new properties.You′ll learn a wealth of various techniques for lowering taxes evenif you don′t use the tax–free exchange, and different creativetechniques real estate insiders use to finance new properties.Plus, helpful checklists and step–by–step guidance will help youavoid the pitfalls and keep you from making rookie mistakes.
Real estate investing is hotter than ever, in part, because thetax benefits of real estate make it a great way to build wealthover time and protect that wealth from the taxman. The tax–freeexchange, as well as other real estate tax loopholes you′ll readabout, is designed to increase home ownership and investment inreal estate. But they only work if you use them! The Tax–FreeExchange Loophole presents clear, practical, and step–by–stepguidance on making the most of IRS rules to increase profits andlower your taxes.
Discover the Greatest Investment Tool of All Time!
The tax breaks and loopholes built into real estate make it oneof the most profitable investments in the world. In fact, the realestate tax exchange loophole known as the 1031Exchange is one of the greatest tax loopholes in existence.This loophole allows a real estate investor to sell a propertywithout paying a penny in capital gains tax as long as theinvestor reinvests his or her profits into another property. Notonly is this a great way to invest without paying taxes, it′s alsoa great way to grow real wealth over time. The rules can beconfusing, but tax exchange works for every investor, big or small.This handy guide offers detailed, step–by–step advice on using the1031 Exchange and much more:
- How the capital gains tax works
- Other little–known real estate loopholes
- Creative real estate financing techniques
- Advanced elements of tax–free exchanges
- Terms and concepts you need to know
- Eight things that can hold up a closing
- Transferring debt to other properties
- How zoning laws affect your investments
- How tax–free exchanges affect your tax shelter
- Where to find potential exchanges
- Twelve creative techniques applied to exchanges
- Nine booby traps to watch out for in exchanges
Don′t wait use the 1031 Exchange to start building yourfortune today!
About the Author
JACK CUMMINGS is a partner in the FortLauderdale based firm Cummings Realty, Inc., a consultingfirm for real estate developers and marketing companiesspecializing in hotel, time–share, and large project marketing. Heis widely published in the field of real estate investing,financing, and marketing, and is the author of the classic RealEstate Finance and Investment Manual.