A 1031 tax deferred exchange represents a simple, strategic method for selling one qualifying property and the subsequent acquisition of another qualifying property within a specific time frame. The procedure allows an investor to roll all capital gains into another property, and defer taxes - thus increasing your immediate buying power.

Although the logistics of selling one property and buying another are virtually identical to any standard sale and purchase scenario, an exchange is different because the entire transaction is memorialized as an exchange and not a sale. And it is this distinction between exchanging and not simply selling and buying which ultimately allows the taxpayer to qualify for deferred gain treatment. So essentially, sales are taxable and exchanges are not.

Any property owner or investor who expects to acquire replacement property subsequent to the sale of his existing property should consider an exchange. To do otherwise would necessitate the payment of capital gain taxes in amounts which can exceed 20-30%, depending on the appropriate combined federal and state tax rates. In other words, when purchasing replacement property without the benefit of a 1031 exchange for real estate, your buying power is dramatically reduced and represents only 70-80% of what it did previously.

"Upstate NY is a ripe market to consider for suitable 1031 Exchange properties. You can safely trade the gains made in your high-appreciation market, for healthy cash flow and stable property appreciation."

For more information about 1031 Exchange opportunities, please call us at 585-419-3804 or fill out our CONTACT FORM and one of our agents will contact you promptly.