Want to upgrade your Florida rental property? Here is some important information on an important tax deferral program for your investment property.
The 1031 Exchange is a tax deferral program for investment properties that allows you to sell your current rental property and purchase a new rental property without paying Federal capital gains if you will be re-investing that sale gain into a different “like-kind” property of equal or greater value.
This tax deferral offers an immediate benefit of deferring capital gains tax, but it also has some other benefits for the savvy investor, which is increasing buying power by reinvesting the full proceeds of the sale to the new investment property.
There are many important rules to follow, so be sure to ask a qualified tax adviser for all of the details.
Happy investing, Florida!
