1031 Tax Exchange

If you’ve been looking for information on a 1031 exchanges then you might consider the services of Costa Financial Securities, Inc. This company specializes in different tax deferral strategies and this includes 1031 tax exchange property solutions. The basic idea behind a 1031 tax exchange is that you can reduce or relinquish your tax-burdened assets more effectively and efficiently, and you may be able to defer all of the capital gains tax and depreciation recapture tax when you sell certain kinds of property.  If you replace the sold property for a like kind one, you can defer the profit or gain until a later date.

To put this into legalese, the Internal Revenue Code, section 1031 describes it: “No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held either for productive use in a trade or business or for investment.”

The key for any successful 1031 tax exchange to work right, the transaction must be properly structured.  This is not something you’d want to undertake with the right kind of expert advice.  Costa Financial Securities can work with you in a number of different ways to help guide you through the process or give you the right type of advice so you can effectively use the 1031 exchange. Costa has partnered with leading 1031 exchange professionals and are able to best leverage those relationships to make sure each real estate transaction that can benefit from this tax exchange.

Some of the ways that Costa can help you would be to help you defer all of the capital gains tax and depreciation recapture tax in a real estate transaction, possibly increase your income and capital appreciation, reduce you property management troubles, diversify you real estate portfolio to a better class of asset as well as a more desirable geographical property.  They can also put you in touch with the right qualified tax attorney or accountant, and they can procure a highly trained intermediary who is an expert on 1031 tax exchanges.