Are you holding out on selling your property because you don’t want to pay all those taxes?

Well I have some good news! The government has provided a way for you to defer your taxes on the sale of a property. This program has been around awhile, but it not that well known. The program is called the 1031 Exchange. The 1031 Exchange is a law that allows the defferal of capital gains taxes on the sale of an investment/commercial property.

Upon the sale of your property, the proceeds are held in escrow for up to 180 days. During that time, you have the opportunity to find another property of “like kind” to purchase using those proceeds. This way the capital gains taxes are deferred until you sell a property without opting for the Exchange.

Now, this was a very simple (watered down) explaination of the program. Please be sure to consult your tax advisor or attorney before making any such decisions.

Until next time. Keep your hands on your wallet, and your eyes looking forward.

This entry was posted on Tuesday, June 5th, 2007 at 6:04 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.