Federal capital gains taxes from the sale of investment property can be crippling, professional 1031 exchange in Davenport IA can help to ease the pain of capital gains taxes. This powerful tax deferment strategy can help to protect your wealth. There are clear benefits to taking advantage of a 1031 exchange in Davenport IA prepared by a professional with experience.
These Three Benefits
Selling off an investment property does not mean having to split the proceeds with the IRS, it means that you must have a plan in place that will defer those capital gains. The 1031 exchange allows you to sell off one investment property than reinvest in another and defer the taxes. There are three benefits to using this tax law to your advantage:
- Leverage the gains to your advantage
- Protect cash flow
- Helps to build wealth
Leverage the Gains
Instead of handing over the gains in the form of a capital gains tax, you can leverage the gains and reinvest. Keeping more of the money from the sale means you have more money to invest in the next property.
Protect Cash Flow
Whether you own a share, a building or multiple buildings, protecting the cash flow is critical to the successful management of your investments. Having more cash on hand for maintenance and other management activities helps to create an environment of balance in your portfolio.
Build Wealth
Using the exchange program allows you to build wealth. You can defer capital gains taxes over and over with the 1031 exchange option, all you must do is keep investing in properties. This helps you to build a varied portfolio and build wealth.
Get Professional Support
Learning more about the qualifications and caveats of the 1031 exchange starts with having an attorney on your team that is well-versed in the law and that can give you the dependable advice that you need. With the right help you will be able to structure your sales and purchases to take full advantage of this generous tax deferment plan. David J Franks Attorney at Law is a good choice to learn more about the 1031 deferment. He will review your plan and help you to take the steps necessary to take full advantage of all the benefits that it has to offer. Before you sell, talk to David J Franks Attorney at Law.
