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1031 Exchange
Save on Capital Gain Taxes with an Like-Kind Exchange
When you sell your interest in an investment property and buy another, you  may face a larage capital gain and the prospect of paying federal taxes on it - and in some states, state taxes as well.
A 1031 Exchange allows you to dispose of investment peoperties and acquire "like-kind" properties while deferring federal capital gains taxes.  Most states with capital gains tax offer a similar tax advantage, too. Bottom line: a 1031 Exchange lets you reinvest sale proceeds that would otherwise be paid to the government as capital gains taxes.
"Like-Kind" Properties:
Most real property is considered "like-kind" to other real property. A single-family rental unit, for example, may be used to acquire another like it. or to purchase a warehouse, retail center, or office building.  Like-kind limitations on personal property are more restrictive; assets must be classified similarly under government accounting classifications.
Non-Tax Benefits of Exchanges
In addition to deferring the capital gain tax, tax deferred exchanges provide the investor with a wide range of non-tax opportunities to suit the investor's portfolio:
Reposition assets
Change property types
Increase leverage
Increase depreciation deduction
Reduce management obligations
Provide for estate and retirement planning
Allow for relocation
Improve cash flow
Achieve property consolidation or diversification
Eliminate or create joint ownership
Defer phantom gain on problem properties
Consturct improvements on a property
Call Me Today for the details of 1031 Exchange!