1031 Exchange, Reverse 1031 & Construction 1031 Explained | Avoid Capital Gains Taxes on Real Estate

Avoid Capital Gains Taxes: 1031 Like-Kind Exchange, Reverse Exchange, Construction Exchange, & Simultaneous Exchange for Real Estate | Explained

If you intend to use the proceeds from the sale of business or investment real estate to buy more business or investment real estate, rather than paying federal capital gains taxes immediately, consider reinvesting in another real estate asset instead. Making an outright sale of appreciated business or investment real estate instead of doing an exchange, will result in a current tax hit. A 1031 exchange is sometimes referred to as a Starker Exchange or a tax-deferred exchange because you won't pay taxes on the sale until you eventually sell your newly acquired real estate asset.
------------------------------------------------------------------------------
❣️ Need more information? Contact us.
https://taxaxecpa.com/contact

#1031exchange

00:00 - Use a 1031 exchange to avoid capital gains taxes
01:07 - 1031 Exchange is a good way to transfer wealth
01:36 - The future of the 1031 exchange
02:32 - Types of 1031 exchanges
02:47 - What to know about 1031 exchanges
06:25 - Forward or Delayed 1031 Exchange
07:25 - Reverse 1031 Exchange
10:18 - Construction 1031 Exchange
12:28 - Simultaneous 1031 Exchange

TRANSCRIPT:
As of 2023, a 1031 like-kind exchange is still a good way to temporarily avoid capital gains taxes and defer depreciation recapture when you sell business or investment real estate. If you sell your newly acquired real estate asset and do another 1031 like-kind exchange, you will continue to defer capital gains taxes and depreciation recapture. There is no limit to how many times you can do a 1031 exchange. So, you can keep exchanging one real estate asset for another to delay paying taxes. You are simply deferring and not eliminating your taxes on the sale. Eventually, you will have to pay taxes on the sale but it's still a good way to grow your wealth without losing money in taxes on each transaction.

It's also a good way to transfer wealth because when your beneficiaries inherit real estate that you used in a 1031 like-kind exchange, they won't pay taxes on it until they sell it. The best benefit for beneficiaries is that when they finally sell your real estate, they will only be liable for capital gains tax on the difference between the final selling price of the real estate and the fair market value of the real estate at the time of your death. If you want to know a little more about how this would work for your beneficiaries, please click on the link to the video that popped up above.

We really don’t know how much longer the full benefit of a 1031 exchange will last because President Biden has proposed tax reform that will limit deferred tax payments on gains over $500,000. If Congress does adopt the proposal, section 1031 will be a less effective tax strategy. Please always be sure to check to make sure that you are following the latest regulations before you set out to do a 1031 like-kind exchange.

There are four types of 1031 exchanges. A forward or delayed exchange, a reverse exchange, a Build-to-Suit or construction exchange, and a simultaneous exchange.

ABOUT US:
Welcome to Tax Axe! It’s time to learn some federal income tax strategies. It's true federal taxes can be complicated, so we’re here to help you navigate it. On our channel, we believe you shouldn’t have to pay more tax simply because you don’t have enough knowledge on the subject. Ready to learn?

👉 𝐈𝐟 𝐲𝐨𝐮 𝐥𝐢𝐤𝐞 𝐭𝐡𝐢𝐬 𝐯𝐢𝐝𝐞𝐨, 𝐩𝐥𝐞𝐚𝐬𝐞 𝐥𝐢𝐤𝐞 𝐢𝐭 𝐚𝐧𝐝 𝐬𝐡𝐚𝐫𝐞 𝐢𝐭.

👉 𝐃𝐨𝐧'𝐭 𝐟𝐨𝐫𝐠𝐞𝐭 𝐭𝐨 𝐬𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞 𝐟𝐨𝐫 𝐦𝐨𝐫𝐞 𝐮𝐩𝐝𝐚𝐭𝐞𝐬
https://www.youtube.com/@Tax-Axe

Stock footage provided by
Video by press https://pixabay.com/users/raniramli-731298/?utm_source=link-attribution&utm_medium=referral&utm_campaign=video&utm_content=27708

Image by Gordon Johnson https://pixabay.com/users/gdj-1086657/?utm_source=link-attribution&utm_medium=referral&utm_campaign=image&utm_content=1227893

Image by OpenClipart-Vectors https://pixabay.com/users/openclipart-vectors-30363/?utm_source=link-attribution&utm_medium=referral&utm_campaign=image&utm_content=158089

Тэги:

#1031_exchange #reverse_1031_exchange #construction_1031_exchange

Скачать видео