What are the Benefits of a 1031 Exchange?

One of the questions we often hear is "What are the benefits of a 1031 Exchange?"

A 1031 Exchange is an excellent tool for building your wealth by keeping your money working for you by deferring the payment of your taxes and by increasing your cash flow.

Let's say you bought a single family residence for $300,000. You rented the property for five years and it increased in value to $500,000. You now have a $200,000 capital gain. Now, let's say you're ready to trade up into a fourplex. If you sell the property, you will pay taxes on the $200,000 gain and have a much smaller amount to reinvest. However, if you do a 1031 Exchange, you can defer all of the gain into the fourplex. You have successfully increased your cash flow and net worth.

1031 Exchanges are complex, that's why you need an expert! Call Exeter 1031at 1-619-239-3091 or visit http://www.exeterco.com