Tuesday, July 17, 2007

Answer to a question

So, I have been working on getting a blog going for work recently and I think I have been given the ok to go forward. So, hopefully it will "go live" here in the near future. I'll be sure to let you know as soon as it does. But, in the meantime I have found a great blog that has been immensely helpful, ProBlogger. I am trying to glean from this blogger some good habits for when our company blog is up and running. He said to answer the questions of your readers to add greater insight and connectivity between yourself and your readers.

As such, I am going to answer the one and only question I have received as of yet: "Chad, what is a 1031 exchange?"

As you'll see, there's a link in this post to where I did a little write up on it on my "1031 Exchange" Facebook group page. I rather liked the way it came out so I recommend linking to it or just reading it below.

"Here's a little quick education on 1031 exchanges so you can feel more empowered for yourself and for others whom this might apply to. The IRS has allowed people to defer capital gains taxes when they sell a money making property and buy another money making property. Usually you would have to pay these taxes if not for a 1031 exchange. The government has said that if you sell this money making property (we'll say a rental property) and buy another money making property of like-kind (i.e., a piece of raw land in Hawaii) you can go through a 3rd party and get your taxes deferred. Our company, 1031 Exchange Coordinators, is the 3rd party that facilitates this tax deferral.

This knowledge is useful for everyone becasue somewhere along the lines you'll realize that buying real estate may fall within your income or retirement plans or you know someone who is now able to. You can either pay about 20-25% of the sales price in taxes or not pay them by doing 1031 exchanges. That is what a 1031 exchange can do for you. It will allow you to defer the taxes forever if you so choose and save 100s of thousands of dollars over your lifetime."

So, there is the answer to your question about 1031 exchanges. I expect this may bring to your mind more questions and thoughts; let us know what they are and I'd love to help answer them or at least steer you in the right direction.

1 comment:

tyler and ali said...

Hey you guys! I think you need to add some family info to this page...tell Melanie "hi" and you guys can check out our blog (and see cute picts of our baby girl) at viguehouseofhappiness.blogspot.com. Give Mel my love!