1031 Exchange Program - smooth sailing into savings! You can save on Capital Gain Taxes with a "Like-Kind" exchange! The benefits of a tax deferred exchange are significant. What is "like kind"? The investor must sell propetrty that is being used for income or investment and acquire replacement property that will be held for income or investment purposes. In other words, the property you sell or buy can't be your own residence to live in. You must lease out this home for at least two years. If I have an existing loan on the property, can I still use it for a 1031 Exchange? Yes! Whether you have a mortgage on the property or own it free and clear, you may sell and exchange for "like-kind". There are procedures to follow in order to complete a 1031. Internal Revenue Code 1031: "No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged soley for property of like kind which is to be held either for propductive use in a trade or business or for investment." The sale of the property you wish to exchange must be clearly identified to all parties in the transaction. A 1031 facilitator will be handling the procedure. You will not receive any of the funds of the sale. The funds are held by the exchange service. After the sale of the exchange property, the investor has 45 days to identify the new property for investment purposes. Reinvesting the equity from the sale of the original property defers the capital gain tax. You are able to leverage those funds into a more desireable portfolio. Benefits from a 1031 are many, here are a few: Increase depreciation deduction, improve cash flow, increase leverage, achieve property consolidation. What property qualifies for IRC 1031?? Bare land, commercial rental, industrial, residential rental, percentage interest in investment property, farmer's farm, this is not a complete list, but gives you an idea of the versitility of the program. Second homes will not qualify for tax deferred exhange. It is important to investigate this program with your legal or tax advisor. I have personally seen this program in action and the results can be very beneficial to you, the wise investor! As you local Buyer's Agent, we are here to consult with you on your next acquisition. We offer a seamless and structured full range of Real Estate services, from acquisition to management! Phoenix is one of the fastest growing cities in the United States. There are thousands arriving monthly. They all have one thing in common: Where will we live?? For more information concerning the 1031 Exchange, please contact Linda @ 602.224.8818 @ IPX Property Exchange Servcices. Thanks you for visiting the investors website.