Apple Valley 1031 Exchanges are difficult for some people to understand, but this doesn’t need to be the case. On this page, we have some basic information on a legal method to defer capital gains taxes on a property. Keep reading to learn how something that started back in 1921 has changed over the years to offer modern citizens exchanges to help them financially.
What is an Apple Valley 1031 Exchange?
Basically, a 1031 exchange is used when you sell an investment property. If you put the proceeds to work – by buying land or another property that will be a source of income – you can defer having to pay the normal capital gains taxes on the sale of your real estate.
Benefits and Requirements for a 1031 Exchange in Apple Valley
If you want to reap the benefits of an Apple Valley 1031 exchange, you need to make sure you meet the requirements. One of the biggest benefits is the fact that you’re not going to be paying more taxes. Here is a list of some of the other benefits and requirements you need to meet.
- No Capital Gains Taxes – As mentioned, the biggest benefit of an Apple Valley 1031 exchange is that you’re going to get your capital gains taxes deferred.
- Must be an Income Property – This is not available if you plan to use the proceeds from one real estate sale to purchase a private home for your own use. It needs to be a property that will make money.
- Keep Your Money Working – Because you don’t have to pay the capital gains taxes, you’re going to be able to keep that money working for you.
- Ability to Grow Wealth – If you do have your money keep working for you by investing in another income property, you’re going to be able to grow your wealth over time.
If you’re interested in learning more about 1031 exchanges in Apple Valley, give us a call or send us an email. We will answer any questions you might have about this section of the tax code. Additionally, we can give you advice on the best way to ensure that don’t lose a lot with capital gains taxes.