If you are able to qualify for a 1031 exchange, you will be able to benefit significantly from the perspective of your tax obligations. This is why 1031 exchanges are so desirable for many people.
Taxes, liens, closing costs and other fees are always at the front of a homebuyer's mind. Without the right resources and strategy, a home sale can wipe out equity or take a deal off the table entirely because of the extra money for middlemen or the government.
It is very common for investors in the state of Florida to seek to lower their capital gains taxes. Of course, these people are also concerned with doing so legally.
The real estate market is rather unforgiving, but you may not even need extra cash to keep playing it. The interesting world of 1031 exchanges may appeal to real estate investors looking to increase their chances of profit.
It's possible to move from one property to another without the double process of selling a current home and buying a future one. A smart investor can even add value with the process, known as a 1031 exchange.