In 1991, the U.S. Treasury adopted regulations which govern the practice of IRC Section 1031 Like-Kind Exchanges. Since the adoption of the regulations, thousands of investors have deferred capital gain taxes on the disposition of their business, investment or income property

1031 Exchange allows the wise investor to build wealth through reinvestment. Instead of using profits to pay capital gains taxes, you can retain control of your money in order to:

• Increase cash flow

• Purchase new or different property

• Diversify properties

• Consolidate various properties

For instance, you might sell raw land, which is not yet producing income, to buy an established commercial building. Or, you can sell a business aircraft for a newer model. With the 1031 Exchange, deferring Capital gains taxes in order to reinvest is often a profitable choice.

The tax rates that apply to a net capital gain are generally lower than the tax rates that apply to other income. See the IRS for more information.

Contact Don Moore