Since the real estate market peaked back in 2006, then headed downward or remained stagmant over the next five years, 1031 exchanges became much less common. As they say, you've got to have a capital gain in order to worry about paying tax on it. The few exchanges that were done over the preceeding 5-6 years were usually from investors who had held on to their property for a very long time, decades, and were now looking to sell, defer the capital gain, and buy a new property.
Now, however, with inventory being so low, and prices rising dramatically here, and all across the nation this past year, 1031 exchanges are once again proving their value to wise investors. And, wrapping up the busy summer season here, it has certainly been a seller's market! And, if the demand continues, interest rates stay near historical lows, and the US economy continues to recover, you can bet that real estate will remain a profitable investment. Even with a slow recovery, real estate has always proven to be a good hedge against inflation, and with the continued pumping up of the economy by the Federal Reserve, we are sure to see inflation's effects in the coming years.
There is no need to pay the hefty capital gains and depreciation recapture taxes for someone looking to sell investment property. A 1031 exchange is a time-tested method of keeping your capital, and allowing it to continue to compound, and work for you. Talk to our exchange specialists at www.1031exchange.co and learn how to protect your real estate investment portfolio.
Now, however, with inventory being so low, and prices rising dramatically here, and all across the nation this past year, 1031 exchanges are once again proving their value to wise investors. And, wrapping up the busy summer season here, it has certainly been a seller's market! And, if the demand continues, interest rates stay near historical lows, and the US economy continues to recover, you can bet that real estate will remain a profitable investment. Even with a slow recovery, real estate has always proven to be a good hedge against inflation, and with the continued pumping up of the economy by the Federal Reserve, we are sure to see inflation's effects in the coming years.
There is no need to pay the hefty capital gains and depreciation recapture taxes for someone looking to sell investment property. A 1031 exchange is a time-tested method of keeping your capital, and allowing it to continue to compound, and work for you. Talk to our exchange specialists at www.1031exchange.co and learn how to protect your real estate investment portfolio.
