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Deferring Taxes in the sale of Investment Real Estate

deferring taxes in the sale of investment real estate using the 1031 exchange.

If you own income or investment property, you probably already know that a sale of income property can result in the following tax liabilities:
•15% Federal Capital Gains Tax
•25% Depreciation Recapture Tax
•9.3% State Capital Gains Tax
 
 In general people who cash out of investment/income producing property can expect to pay approximately a third of their gain/profit in taxes!  Luckily, Section 1031 of the Internal Revenue Code offers investment property owners the ability to defer taxes (and possibly avoid them altogether) by doing a 1031 exchange.

In my 25 years in real estate, I have help dozens of clients facilitate a 1031 exchange representing them in either the list, purchase or both.

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