The Tax-Free Exchange Loophole: How Real Estate Investors Can Profit from the 1031 Exchange
If you're a real estate investor, the IRS's 1031 tax-free exchange is one of the best tools available for making money and saving on taxes. Simply put, it allows you to roll over the profit from one real estate investment into a new investment without having to pay capital gains taxes. In this way, you can grow your wealth in today's real estate market without being pummeled by taxes when you sell.In fact, the tax-free exchange might be the greatest investment tool of all time. Unfortunately, not enough investors know how to use this legal and profitable loophole to their best advantage. There's no doubt that the IRS rules are confusing, but that's no excuse for letting free money pass you by. In this comprehensive, straightforward guide, successful real estate investor Jack Cummings uses his own experiences—and real examples from his own portfolio—to explain every aspect of the tax-free exchange for investors just like you.You'll learn how to minimize your tax losses on individual properties, as well as how to multiply the effect of the tax-free exchange by continually rolling profits over into new properties. You'll learn a wealth of various techniques for lowering taxes even if you don't use the tax-free exchange, and different creative techniques real estate insiders use to finance new properties. Plus, helpful checklists and step-by-step guidance will help you avoid the pitfalls and keep you from making rookie mistakes.Real estate investing is hotter than ever, in part, because the tax benefits of real estate make it a great way to build wealth over time and protect that wealth from the taxman. The tax-free exchange, as well as other real estate tax loopholes you'll read about, is designed to increase home ownership and investment in real estate. But they only work if you use them! The Tax-Free Exchange Loophole presents clear, practical, and step-by-step guidance on making the most of IRS rules to increase profits and lower your taxes.