If you are a tax junkie, you already know about 1031 exchange. But, if you are not aware of it, then here is a piece of information for you. Broadly stated, 1031 exchange means a swap of one business or asset for something other. Though most of the time swaps are taxable for sale, but in the case of 1031 exchange, you will be entitled to pay limited or no tax at all. It increases the scope of investment for you without deferring the tax. There is no limit on how many times you can do 1031 exchange. It can create a cycle for you, from rolling one investment of a property to another one. So, if you are thinking of investing rather than selling the properties and thinking of gaining profit, this exchange plan is absolutely beneficial for you. At Advance Abstract, we ensure that you get high profit for your investment in property.
Now, you must be thinking about the scopes of this exchange, right? Before you opt for this, it is better that you gain knowledge about it. In Allentown PA and Bethlehem PA, the developing new properties are increasing in number. So, if you are thinking of gaining much profit, it is better for you to opt for this exchange. Take a look at the following points to know more.
3 Things to Know about 1031 Exchange
- Not for Personal Use: No, if you are thinking of using these exchange to swap your house Easton PA with a new one in Reading PA, then it won’t work. This is completely for business and investment purpose.
- Delayed Exchange: It is unlikely that you will get the exact property that you are looking for just after selling one. This allows you to have a middleman to hold the cash and buy the replacement property.
- Closing Time: 180 days are allowed to you to buy another property within the exchange. This timeframe is important for you to remember.
If you are in Stroudsburg PA and want to know more about the exchange, give us a call at 610-740-9100.
Bethlehem PA, Allentown PA, Stroudsburg PA 1031 Exchange services from Advanced Abstract help you get the most out of your business property investment.