1031 Exchange In San Jose, Silicon Valley And The Greater Bay Area

1031 Exchange Your Investment Properties

Why you should consider a 1031 Tax Deferred Exchange for your investment properties?

• Capture Your Real Estate Property Appreciation.
• Defer Taxes
• Build Wealth
• Increase Monthly Cash Flow

1031 Exchange Your Property For:

• A Beach Front Rental Home
• Future Homes For Your Children or Grandchildren
• A Future Retirement Luxury Home
• A Rental Property Closer To Where You Live
• Cash Flow Multi-Family Properties

1031 Exchange In Silicon Valley

Section 1031 of the Internal Revenue Code provides an effective strategy for deferring the capital gains tax that may arise from your business/investment property sale. By exchanging the property for like-kind real estate, property owners may defer their tax and use all of the proceeds for the purchase of replacement property. Like-kind real estate includes business/investment property, but not the property owner’s primary residence. A Qualified Intermediary, as an independent third party, is needed to facilitate a 1031 exchange transaction and hold the funds on behalf of the investor.

Benefits:

LEVERAGE Investors can take advantage of the 1031 Tax Deferred Exchange to acquire a more valuable investment property. By utilizing the money they would have paid to the IRS in taxes, they can increase their down payment and acquire a more expensive replacement property. Thus, leveraging their cash and continuing to build wealth through real estate investment.

CONSOLIDATION/DIVERSIFICATION With the flexibility of an exchange, an investor may exchange one property for several others, consolidate multiple properties into one, and acquire property anywhere within the United States.  For example, an investor can exchange two duplexes for a retail strip center, or take advantage of a new growth area by exchanging one property in California for three properties in Arizona.

MANAGEMENT RELIEF Investors that own several rental properties are often faced with the burdens of intensive management and costly maintenance-which often leads to increased headaches!  An investor can increase profits and decrease time and effort by exchanging out of high maintenance rental properties and consolidating into an apartment building or NNN leased investment.

INCREASED CASH FLOW/INCOME Cash flow and overall income can both be increased through a 1031 Tax Deferred Exchange.  For example, a vacant parcel of land that generates no cash flow or depreciation benefits can be exchanged for a commercial building that does.