Are you planning to invest in a property? Regardless of which property you are investing in, you should be aware of the kind of disputes home buyers have to face these days owing to title frauds, so you have to make sure that you run title searches for the property first before making an investment. Or else, you will face several kinds of inconvenience, especially if you are trying to sell the property later. You must be aware of the requirements for the 1031 tax exchange while trying to sell a property in the future. Without this, you will not be able to invest the proceeds from the sale of the old property into your new investment. We, at Advanced Abstract, can be your one-stop solution for all kinds of property transactions. Right from title searches, title insurance to even such tax exchanges, we can help you with everything. We are an experienced company with more than 25 years of experience in this field. So, if you are located in areas like Allentown PA, Bethlehem PA, Easton PA, Reading PA, or Stroudsburg PA, then you can resort to us.
Here, we have put together a few queries that you might have about 1031 tax exchange if you trying to buy a property with the earning from selling your previous property. Take a look.
- Why do we need the 1031 tax exchange?
According to the US Internal Revenue Code, you can avoid paying capital gains taxes if you sell an investment property and reinvest what you get from such a sale within a stipulated time period. So, you can easily make the purchase of a better property or asset with your other property without any hassle if you have the 1031 exchange.
- How does a 1031 tax exchange work?
Basically, it enables any investor to defer the payment of the capital gains taxes on an investment property purchased with the profits of the sale of your prior property. For more details, you should get in touch with a professional company who deal with such tax exchanges.
So, if your queries have been resolved and you want to avail this kind of a tax exchange, contact us today.