Ads
Save on a 1031 Exchange
-- By Pushpa Sathish, Staff Writer
A 1031 exchange results only in the deferral or postponement of capital gains taxes; it does not remove them from the picture altogether. But there are a few ways the deferral can be converted to savings.
- If the replacement property that is initially purchased for the purpose of investment converted to a personal home at a later date, the exchanger is eligible for a tax discount under Section 121. If he/she is married, the couple saves $500,000; an individual saves as much as $250,000. The only condition is that the property in question should not have been involved in a 1031 exchange for the past five years.
- In the event of the death of the exchanger, his/her heirs can, according to inheritance laws at the time of death, claim the estate free of tax. Current inheritance laws stand at $2,000,000 for an individual.
--
Did you enjoy this post?
Comments
Post a comment
Syndicate
Comments