Benefits Attached To 1031 Exchange in Real Estate Investing

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Benefits Attached To 1031 Exchange in Real Estate
Investing
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• Have you wondered why some investors keep taking
  advantage of the 1031 exchange? There are many
  good answers to this question because of the
  numerous benefits which it carries. The 1031
  exchange is the heaven for people holding real
  estate investment, especially for the heirs. Here
  are some of the most obvious advantages which one
  can enjoy because of this

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Capital Gains

• The foremost advantage of the 1031 exchange ranch
  in Texas is that one can avoid all the capital
  gains and taxes because of it. Selling a ranch or
  farm is considered to be a business transaction
  so you need to pay a considerable sum of taxes
  the following year. The only way to avoid those
  whopping taxes is to go with the process and save
  yourself the hassle of parting with a huge amount
  of money.

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Leverage

• The investors can also take advantage of this if
  they want to acquire a highly valuable property.
  Instead of paying the amount to the IRS in taxes,
  they can utilize the same money to increase the
  down payment and acquire a property which is of
  higher value. This allows them to leverage their
  cash and keep on building wealth through great
  investments in the real estate.

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Relief in Management

• Investors who own several properties are often
  caught in the burden of intensive management.
  This also leads to costly maintenance which is
  nothing less than a headache. The 1031 exchange
  ranch in Texas proves to be a sigh of relief for
  them because it allows them to exchange the
  high-maintenance properties with something better
  saving them the problem of looking after them.
  They find a great way out without paying anything
  extra or bearing the transaction cost and taxes.

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Diversification

• The flexibility of the exchange allows the person
  to exchange his property with several others,
  combine different properties into one, and even
  acquire property from any part of the United
  States. For example, an investor is allowed to
  exchange two duplexes for a retail strip center.
  He can also take advantage of the growth of the
  area by exchanging three properties in Minnesota
  for one in New York. This is his strategy to go
  with something which will be more profit-bearing
  in the future.

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Improved Cash Flow

• The 1031 exchange allows a person to improve his
  flow of cash by letting him exchange a vacant
  land with something which is generating cash. For
  example, you can go with a commercial property in
  exchange for a barren land and continue to earn
  rent or commission on the earnings.

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Increased Purchasing Power

• When you buy or sell a farmland, there are many
  depreciation costs and tax adjustments which you
  need to pay. These reduce the overall gain on
  your property. By being involved in 1031
  exchange, you can easily get rid of all the
  incurring costs and get yourself a great deal.
• The 1031 exchange is undeniably a great option
  but must be carried out with great care.

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Contact Us

• Solid Rock Property is the best firm who can deal
  in 1031 exchange ranch in Texas. For more detail
  visit our website or call us.
• Website
• www.solidrockproperty.com
• Phone
• 406-582-1265