Patrick Noonan

The best way to determine if you will benefit from 1031 Exchange is to determine your tax liability and potential upside realized when utilizing 1031 Exchange. If you are a real estate investor, whether you own a single rent house, multi-family, retail office or industrial real estate to name a few, chances are that you would benefit from a 1031 Exchange. If you want to take the guesswork out of your decision to use 1031 Exchange as part of your real estate investment plan, speak with your tax advisor. I am happy to work with them in determining if a 1031 Exchange will benefit you.

In addition to the tax deferral, taxpayers can leverage their equity purchasing more real estate to increase cashflow. Taxpayers can use 1031 Exchanges to change markets in order to move out of underperforming areas or where the costs of operation are prohibitive. For example, some states have high utility costs, high taxes, and generally high costs of doing business. Some taxpayers sell to take advantage of the equity increases they have realized and find replacement properties that will generate more cash flow or have greater appreciation potential. Other taxpayers are exchanging in an effort to reduce losses seen in declining markets by using 1031 to defer the taxes owed even for property that has decreased in value.

Give me a call at (972) 310-4127 and I’ll talk you through the initial steps. Or click here to fill out our online form.