Should Bucks County Home Owners know what a 1031 Exchange is?
Let’s start with the basics. Are you considering selling a home or investment property in Bucks County? Using those proceeds to purchase a similar valued property? Thanks to IRC Section 1031, a properly structured 1031 exchange allows an investor to sell a property, to reinvest the proceeds in a new property and to defer all capital gain taxes. Great news, right?!
Since I’m not a CPA, I can’t say enough to contact one to learn more. But the tax code itself says “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.”
If you’re a Bucks County Home Owner (buyer or seller), can you benefit from this tax code? Possibly. Contact your CPA of Financial Advisor to be sure. Elizabeth Weintraub from “the Balance” shares her thoughts at 1031 Exchanges.
Bottom line, be sure you are familiar with and have consulted an expert around 1031 Exchanges when conducting your own real estate transactions. It’s always smart to know all your options and be an educated investor!
Need help finding or selling your own Bucks County real estate property or home? Contact ME today.