Tax Deferred Exchange Explained
Tax Deferred Exchange Explained
The internal revenue code or
tax deferred exchange is an effective tax deferral strategy available to taxpayers. This code allows for a rollover of equity of like rental real estate, through a tax deferred exchange, to take place without requiring the payment of capital gains taxes on the initial investment. Performing a
tax deferred exchange allows real estate investors to use all of the proceeds from the initial sale of rental real estate. Many real estate investors use such exchanges as leverage for entering more lucrative
rental real estate deals, which in turn increases their cash flow and diversifies their investment portfolios while at the same time consolidating their investments into one rental real estate.
If you recently sold an investment
rental real estate or you’re considering selling, we can match you with a
tax deferred starker expert able to help you explore your
tax deferred exchange options.