Yes. Section 1031 exchanges are a great way to avoid taxes when you’re acquiring bigger and better properties.
But be aware! When the time comes to cash out,
1031 should not be used.
What’s the best way to avoid taxes and keep cash in your pocket?
There are three proven strategies you can take advantage of as you’ll learn when you read my new article titled Tax Tips: Cashing Out Real Estate Profits without Section 1031!
Three strategies for cashing out real estate profits.
Strategy #1: Use charitable remainder and wealth replacement trusts. Using these trust in combination can create more estate value for your heirs and more cash for you. We’ll explain the three steps you need to take when you read the full article.
Strategy #2: Unlock the money-saving power of Section 721. This section of the tax code lets you transfer property to an operating partnership of a real estate investment trust (REIT). This special REIT not only helps you avoid taxes on the transfer of your property, but also provides liquidity. All will be explained when you read the full article.
Strategy #3: Use an installment sale. If you don’t mind paying the taxes but would like the tax payments to be spread out over a number of years, a Section 453 installment sale may be perfect for you. When you use this strategy, you can earn interest on the gross amount and pay taxes as the interest payments roll in. You’ll get the whole story when you read the full article.
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