1031 Exchange

1031 exchange vs. Selling:

A Section 1031 exchange is one of the few techniques available to postpone or potentially eliminate taxes due on the sale of qualifying properties.

By deferring the tax, you have more money available to invest in another property. In effect, you receive an interest free loan from the federal government, in the amount you would have paid in taxes.

Any gain from depreciation recapture is postponed. You can acquire and dispose of properties to reallocate your investment portfolio without paying tax on any gain.

General guidelines for a taxpayer to defer all taxable gain:

The value of the replacement property must be equal to or greater than the value of  the relinquished property.

The equity in the replacement property must be equal to or greater than the equity in the relinquished property.

The debt on the replacement property must be equal to or greater than the debt on the relinquished property.

All of the net proceeds from the sale of the relinquished property must be used to acquire the replacement property.

Information above is from www.1031.org, For more information on 1031 exchange please visit http://www.1031.org/about1031/faq.htm

Contact us and we would be happy to help you locate and structure the highest return possible in your required time frame associated with the 1031 process

Disclaimer: All of the above information is intended to be reviewed in its entirety.  Portions of the information may lead to inaccurate assumptions when not viewed in the context of the entire project.  The Zeleznak Group limits investors to only qualified and accredited investors.

All of the above information has been prepared by The Zeleznak Group, based entirely on assumptions provided by developers.  The Zeleznak Group, its affiliates and individuals involved in the preparation do not guarantee the accuracy of these assumptions or the results projected from these assumptions.  All of the provided information is submitted for use by the developer, investors and potential lenders as they see fit and is subject to errors and omissions.

Neither The Zeleznak Group, its affiliates or the other entities guaranty the accuracy of the preliminary development costs or the results projected from these assumptions.