Let Your Real Estate Business Grow With 1031 Exchange

The 1031 tax exchange is a scheme that allows property investors and realtors to sell old properties and reinvest in new properties while saving capital gain taxes. With the 1031 tax deferred exchange you can continue to invest in better properties and save taxes.

Let us understand how a 1031 tax deferred exchange actually works. You ask an investor sell your property and the funds gained from this sale is held with a Qualified Intermediary (QI), whom hire and plays an important role in the exchange process. To purchase a new property, the investor directs the QI toward the purchase of a new property. This is the only method that allows you to save on capital gain taxes.

Qualified Intermediaries not only help with exchange of 1031 tax deferred exchange but also advise you on your financial investments. While the 1031 tax deferred exchange may seem pretty straightforward but also comes with its own complexities and it where a QI can be of great help. A good QI can actually make your 1031 tax-deferred exchange smooth and hassle-free.

The property that you sell in a tax-deferred exchange is termed relinquished property. The owner of the property may consider selling his property for some of these reasons:

1. To unlock the equity tied up in the underperforming, yet appreciated property.
2. When the property is too management-intensive.
3. In order to acquire a property of higher quality; or
4. To acquire a property that produces higher and consistent income.

For a relinquished property to undergo a 1031 exchange, it has to meet certain financial characteristics. These characteristics may include the level of the sale price, equity, and debt level of the relinquished property. All of this is taken into consideration to determine if the replacement property has a purchase price that is same or greater than that of a relinquished property.

If you are looking for 1031 tax-deferred exchange, Fai exchange can be your financial advisor and Qualified Intermediary (QI). With years of experience in the industry, Fai exchange can effectively arrange documentation and support forms for a successful 1031 exchange to commence.

You can visit our website https://www.fai1031.com/ and fill up the contact form. We will soon get in touch with you and proceed with the discussion.

FAI Exchange
P.O. Box 487
Dedham, MA 02026
888-669-3332

This release was published on openPR.