As you may know, a Section 1031 exchange can serve as a highly effective tax strategy.
How?
By helping you defer paying taxes. Always a good thing.
What you may not know is that there are two times when a 1031 exchange can work against you.
Want to learn how to steer clear of two traps the IRS has set for you?
Read my new article titled Tax Tips: The TWO Times to Avoid the 1031 Exchange!
Three ways our fact-filled article can help you:
- You’ll learn how to keep from making an accidental mistake. There’s a real danger of stumbling into a Section 1031 exchange without even knowing it. You see, generally you don’t want 1031 tax-deferred treatment if your asset would produce a tax loss if sold outright. Why? You’ll find out when you read the full article.
- We’ll explain the useful “sell-and-buy” strategy. Instead of doing a 1031 exchange, consider selling your old asset, paying the taxes on the sale, then buying the new asset. The selling price does not trigger self-employment taxes. We’ll provide a useful example and an explanation that will make everything clear when you read the full article.
- We’ll tell you the right strategy to use if you’re self-employed. Be sure to avoid the 1031 exchange if you’re self-employed and can use a “sell-and-buy” strategy. You’ll save a lot on self-employment taxes. Get all the details in easy-to-understand language when you read the full article.