Be A Wise Real Estate Investor And Make A 1031 Exchange
Friday, November 13th, 2009
If you are a real estate investor who is about to sell a property and use that money to purchase more real estate, make a 1031 Exchange instead of just selling outright.
Making every dollar work for you compounds your wealth. Anytime you don’t compound your wealth, you have missed an important opportunity. A 1031 Exchange offers you one of these wealth-compounding opportunities. Don’t ignore it.
When you sell a property, you have two basic options. First, you sell the property outright, take your profits and pay capital gains tax on them. Second, you could sell your property under a 1031 Exchange and not pay the capital gains tax for the foreseeable future.
There is a provision under section 1031 that allows you to defer your capital gains taxes while your wealth is compounded by investing the income produced by deferring the capital gains.
While reading this article, the first question that may come to the mind of the reader is why would someone still use a mechanical watch that needs wounding in today’s world? In a world filled with automatic and digital watches of the latest technology, it does seem like a waste of time, but it is not so for a watch collector. Owning and maintaining a mechanical watch is all about appreciating the art of watch making. A mechanical watch requires wounding once every forty hours roughly to keep it running but the rule is to wind it everyday when you go to sleep or get up from sleep.