Do you know what a 1031 Exchange is?

Recently I have had a couple of clients ask me about doing a 1031 exchange. This is a government program that allows you to defer capital gains taxes.

This program only applies to investment homes where you are using it for income. For example, if you have a home that you are renting out to tenants, and lets say the lease is about to expire and you aren't sure if you want to retain this home or sell it to buy another in a different location.

Then you see that you have gained some equity in the home and you decide to sell it and to re-invest in a new home in a different area. When you sell the first home you would normally be required to pay the capitol gains taxes on the equity you gained.

But by using the 1031 exchange, you can now buy another home in a different location and defer those taxes. In other words, you don't have to pay those taxes today.

There are many more details regarding the 1031 exchange, how it works and the time frames in which to complete the 1031 exchange.

For more details, please just call Julz. 949-633-6788

www.justcalljulz.net