Is a 1031 Exchange Right for You?
A 1031 Exchange lets real estate investors sell a property and defer capital gains tax by reinvesting the proceeds into another investment property.
It’s one of the most valuable tools available to investors. But the tax savings alone shouldn’t be what drives the decision.
The better question to ask: do you want to stay invested in real estate?
If the answer is yes, a 1031 Exchange lets you roll your full equity into your next property instead of sending a chunk of it to the IRS. That’s a real advantage.
However, if you’re ready to move into other investments, pay down debt, fund retirement, or simply step back from owning property, paying the tax and moving on may be the smarter choice.
If you do a 1031 Exchange, the replacement property should fit your goals, your timeline, and your tolerance for risk. Deferring tax is only a win if you end up owning property that fits where you’re headed.
Talk with your CPA or financial advisor. If a 1031 Exchange is the right move for you, we’re here to help. Questions? Email Jeff Rattikin at rattikin@rattikinlaw.com.
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