Do Your Clients Know How To Use A 1031 Exchange? |
Your clients may be in for a Huge Capital Gain Tax Hit when they sell appreciated property. They may not be aware of how to use Section 1031 like-kind exchanges to defer the recognition of gain...indefinitely (perhaps forever) by structuring transactions as 1031 exchanges.
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| Compound and Build Wealth for the Future |
When clients sell property without incurring an immediate tax liability, they keep the earning power of the deferred tax dollars working for them. Commercial Partners Exchange Company, LLC can give your clients an advantage over other investors, as your clients will be buying with tax-deferred dollars rather than paying with after tax dollars.
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| The Benefits of 1031 Exchanges |
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Indefinitely hold-off recognition of taxes you would otherwise have to pay |
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Re-invest into like-kind property, using leverage to compound & build wealth
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Example
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| RELINQUISHED PROPERTY |
REPLACEMENT PROPERTY |
VALUE: $10 Million
EQUITY: $6 Million
DEBT: $4 Million
Adjusted Basis: $2 Million
Realized Gain: $8 Million
RECOGNIZED GAIN: ZERO |
VALUE: <= $10 Million
EQUITY: <= $6 Million
New DEBT: <= $4 Million or Add
New Basis: Cost-Deferred Gain |
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| Hypothetical example: consult your own attorney or accountant for specific advice. |
Typically a client will purchase a replacement property that is "up or equal" in Value (price) and will roll over all of the Equity (net proceeds) from the relinquished property into the replacement property.
Further, to the extent that the client was relieved of liabilities and debt, such as mortgages on the relinquished property, the debt relief is offset by (1) new liabilities or mortgages taken on in conjunction with the purchase of the replacement property; OR (2) by investing additional cash in the replacement property equal to the amount of liabilities and debts that were discharged.
Call 877-373-1031 to gain important information about basic 1031 exchanges and advanced planning techniques that can save your clients money. |
