In just 10 minutes today, our feature presenter and group tax and accounting expert Angie Finch masterfully laid out what a 1031 Exchange is—and why and how you might execute one—while addressing our questions in real time about this beneficial strategy for building tax deferred wealth.
A 1031 Exchange, also known as a like-kind exchange, allows anyone investing in real estate to defer capital gains taxes by selling one investment property and acquiring another similar property. This offers the opportunity to reinvest the proceeds from the sale without triggering immediate tax liabilities that would eat into capital planned for that next investment.
For this, there are some stipulations: such that a property must be identified within 45 days of sale, close within the next 180, and the money from sale must be held in an escrow account through the entire process.
This strategy enables investors to consolidate or diversify their real estate holdings without incurring tax consequences, and can be a powerful tool for building long term or even generational wealth.
Throughout her talk Angie skillfully explained these qualifications, elaborated on the requirements for “like-kind” properties, specified that CPAs are barred from facilitating the exchanges because of potential conflicts of interest, and mentioned some local property exchange and title firms that could facilitate the process.
Her snappy knowledge on the topic and ease in handling questions showcased her valuable ability to responsively help and educate her clients throughout the tax planning process. Connect with Angie to get the most out of your personal and business earnings in 2023.
If you’re interested in joining a group of like-minded business professionals and networking with individuals like Angie, check out our business networking group at border2border.biz/join. We always welcome visitors and love new members, and look forward to connecting with you soon!