1031 Exchanges And Coming Changes

Posted by on Mar 21, 2015 in Blog - Commercial Investment Properties | 0 comments

1031 Exchanges And Coming Changes

Employing a 1031 exchange is a well known strategy for commercial real estate investors. However, proposed changes to the law may affect this type of investment. Steven Silverman and Eric Odum interview Michael Brady on the proposed changes to the law and how those changes may affect you.

This is an educational podcast published by the invest Florida show.
1031 exchanges have a long history. They started in 1929 to make it easier to swap deeds without paying taxes. And in 1991 the structure was modified whereby a third-party could achieve the same purpose by acting as an intermediary between the buyer and the seller.

Essentially a section 1031 exchange allows investors to defer recognition of capital gains when they sell an asset at a profit. Capital gains tax is avoided by exchanging one piece of property for another. This 1031 procedure has a tremendous impact on the real estate industry due to the number of transactions that are conducted using 1031 exchanges
In 2013 and 2014 proposals were made to water down 1031 exchanges. This is still a work in progress but changes to 1031 exchange procedures could have a dramatic affect on real estate transactions in the US. to this informative podcast on the invest Florida show

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