We’ve been investing in real-estate since 1995 and have used tax code 1031 to exchange one property for another many times. Basically, the code allows a person to trade one property for a “like-kind” property. So, if you have a rental house, you could trade it for an office building. Or, if you have a farm, you could trade it for an apartment building.
Using exchanges we’ve deferred thousands of dollars in capital gains tax. It’s a great way to trade up and transfer wealth to your children. Their cost basis is computed at your time of death. So, if you keep using 1031 exchanges every time you sell a property, you never have to pay capital gain taxes!
We researched several options for our first exchange and decided to use the 1031 Exchange Experts in Denver, CO. After speaking with owner, Gary Gorman, for a few minutes, I was convinced. We have done many exchanges over the years and all have been flawless. Also, every title company has commented how great the experience was working with the 1031 Exchange Experts.
We’ve exchanged vacant land for apartment buildings; apartment buildings for warehouses; farms for office buildings; and more. If you have any questions, please just post a comment and we’ll do our best to answer.