IN THIS BLOG:
- History and purpose of the 1031 Tax Exchange.
- Potential changes to the 1031 Tax Exchange in the near future.
- Rent v. Sell Calculator and how it could help you make an informed decision!
It is common for real estate investors to sell their rental property and purchase a different property, or upgrade their current rental property. If you’ve been thinking about upgrading from a duplex to a multifamily property, a condo to a single family, a single family to a duplex, or any other type of property exchange, there are important proposed tax updates that you should be aware of.
The process of selling a piece of real estate and then using the profits from that sale (tax free) to purchase another piece of real estate involves what is commonly referred to as a “1031 Tax exchange”. However, this long standing and commonly used accounting rule may be changing – and not in the favor of real estate …