Do away with your capital gains tax

There are a lot of investors end up making the mistake of selling their business or investment property, but have to pay thousands of dollars in capital gains taxes to the IRS. What they may not know that there are tax laws that allows them to defer all capital gains tax on sale of property which has been kept as a trade or business - and thus keep their winnings. 

The taxes you would normally have to pay when selling an investment property may be postponed (if not eliminated entirely) of this Act. But when you sell your property, the proceeds are used exclusively to buy a property that is considered "like-kind" - which you also want to use for investment or business purposes. By using 1031 exchange law, you can save more money, which in turn allows you to put more money into your property and / or even buy a property, you could never afford if you had to pay taxes. 

A benefit to many investors, 1031 exchange law has the potential to save you a boat-load of money and it is worth the time an effort to put to use. To start reaping the financial rewards, please do follow some procedures first. 

First and foremost, you are wise to choose professionally qualified intermediary (also known as a "QI") with a good track record. A qualified intermediary should be highly confidential and solely engaged in facilitating tax exchanges. Your Q.I. provide a written agreement to amend the transfer from and direct sales to an "Exchange" and then transfer your surrender property (you sell) and take that money and uses it to buy your new home on your behalf. 

To qualify for this exchange, please observe the following rules:

1st First, the property you are abandon and replace having been used for investment or trade, and they must be like kind (ie the U.S. real estate for other U.S. real estate). 

2nd Secondary, find a property to replace your property if you have not already done so, and make sure it is clearly identified writing within 45 days of your qualified intermediary. You must close the sale on the new housing for 180 days. 

3rd To defer your capital gains taxes, all of the proceeds from sales of the first property to be used to buy your new replacement property. 

You will be best placed to make a 1031 tax exchange if you follow these rules. The procedure is simple enough, but even if the path seems a little complicated from time to time, it will be worth it with the money you save. Do something good for yourself by keeping your capital gains with a 1031 Tax Exchange!