James Steele offers the following royalty-free article for you to publish online or in print. Feel free to use this article in your newsletter, website, ezine, blog, or forum. ----------- PUBLICATION GUIDELINES - You have permission to publish this article for free providing the "About the Author" box is included in its entirety. - Do not post/reprint this article in any site or publication that contains hate, violence, porn, warez, or supports illegal activity. - Do not use this article in violation of the US CAN-SPAM Act. If sent by email, this article must be delivered to opt-in subscribers only. - If you publish this article in a format that supports linking, please ensure that all URLs and email addresses are active links. - Please send a copy of the publication, or an email indicating the URL to [email protected] - Article Marketer (www.ArticleMarketer.com) has distributed this article on behalf of the author. Article Marketer does not own this article, please respect the author's copyright and publication guidelines. If you do not agree to these terms, please do not use this article. ----------- Article Title: Defer Your Investment Property Income Taxes Author: James Steele Category: Real Estate, Taxes Word Count: 430 Keywords: tax deferral, 1031 exchange, starker exchange, like kind exchange, real estate transactions Author's Email Address: [email protected] Article Source: http://www.articlemarketer.com ------------------ ARTICLE START ------------------
No one likes to pay taxes, especially if you have worked hard on a personal business or investment property over the years. There are ways for you to take the profit that you earned and for those capital gains taxes to be deferred into the future, so that you can build up your profit and equity much faster. Let's take a look at how a real estate investor can save on their taxes over the long term. The best source of tax deferral for anyone with commercial or residential investment properties is to use what's called a Starker exchange when selling and buying new properties. These are also referred to as tax-deferred exchanges or 1031 exchanges due to the IRS tax code they refer to. By following the IRS rules, an investor is able to sell and purchase a new investment property without having to pay taxes on the capital gains they made on the sale. There are some very specific rules that must be followed in order to make this work, but the benefits of rolling your profit into your next investment will drastically increase the speed of your wealth building. Most importantly you must make sure that every bit of capital gain profit from the sale of the previous investment is used in the purchase of your new property. Also, it is mandatory to make all of your transactions complete within very specific time frames established by the IRS. The important time frames to keep in mind when doing a deferred tax exchange are 45 and 180 days. The 45 day rule states that the investor must specify at least one potential property as the new property that will be purchased with the profit from the previous sale. Furthermore, the final transaction to purchase this new investment property must be complete within 180 days. There are absolutely no exceptions to this time frame, so you must make sure that everything occurs well on schedule. In order to make sure that all of the paperwork is completed correctly and the transactions are achieved on time, it is recommended that investors seek out the guidance of experienced intermediaries that are familiar with the transactions requirements. This is the best way to insure that nothing is done incorrectly and results in you having to pay unexpected capital gains taxes. By working with a qualified intermediary for this interaction you will have timely guidance through the exchange process, and over the long-term you will be able to save thousands of dollars through multiple property transactions which will greatly increase your wealth and equity in your real estate. James helps people understand how to defer their investment property taxes through 1031 exchanges. You can read more of his work by visiting http://capitalexchangegroup.com. ------------------ ARTICLE END ------------------ [Non-text portions of this message have been removed]
