Why A 1031 Exchange Is Good For The Client And Good For The Broker
... the exact tax consequence, but consider that when properly leveraged, the seller of this property has lost approximately $400,000 in buying power. Buying power which could be used to acquire property of considerably more value than if the tax consequences were recognized. The tax savings achieved by completing an Exchange, allows more funds to become available for the purchase of replacement property. The higher the value of the replacement property, the greater the commission realized by the real estate broker. Additionally, in a tight market there are many potential sellers who refuse to sell because they do not want to pay the ... sale of the relinquished property to purchase replacement property. If an Exchanger buys a replacement property of equal or greater value as to the value of the relinquished property, uses all of the equity realized from the sale to purchase the replacement property, and obtains equal or greater financing on the replacement property as was in place on the relinquished property, the entity will have a fully Tax Deferred Exchange. In general, an Exchanger who wishes to buy a replacement property of a lesser value, or with less financing, or who wishes to use a portion of the proceeds from the sale of the ...
Tags: 1031 exchange | 1031 | real estate broker | realtor | real estate agent | like kind |
Tags: 1031 exchange | 1031 | real estate broker | realtor | real estate agent | like kind |