If you want to take advantage of a 1031 exchange in Allentown PA, Bethlehem PA, Easton PA, Reading PA, Stroudsburg PA, then Advanced Abstract can help. They specialize in technical financial aspects of real estate such as deferred taxes, title searches and title insurance. They can help you structure a real estate deal that will enable you to defer all capital gain taxes.
A 1031 exchange is derived from IRC Section 1031 which states
“No gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment, if such real property is exchanged solely for real property of like-kind which is to be held either for productive use in a trade or business or for investment.”
Put another way a 1031 exchange allows an investor to sell a property, then reinvest the proceeds in a new property and to defer all capital gain taxes. It is important however that the deal is structured correctly.
Tax deferred exchanges help investors to grow portfolios and increase return on investment. Understanding the real interpretation of terms such as like-kind can help investors realize lucrative and beneficial real estate deals.
Words and terms play an important role in 1031 exchanges. These include terms such as qualified intermediary, exchanges, relinquished property, replacement property, delayed exchange, exchange period, identification period, like-kind property and more. Fortunately, the experts at Advanced Abstract have in-depth knowledge of these terms, their interpretation and application in real estate transactions. They can show you how could benefit from deferred capital gains taxes and improve your real estate portfolio.
If you want to buy or exchange property, then Advanced Abstract can help you minimize risk with title insurance and improve return on investment with 1031 exchanges.