Saving Taxes on Investment Properties -
 Section 1031 Tax-Deferred Exchanges

If you have investment properties on which you would have significant capital gains taxes at sale and if you like to save taxes, or at least defer them, ask me about Section 1031 Tax-Deferred Exchanges.   You might want to do this if you wanted to move up to a better property, sell more than one small one and get a bigger/better one, or if you were planning to move to another area and wanted to have investment property in the new location instead of having to be a long-distance landlord.

The rental property now highlighted on my home page and on the front page of my real estate newsletter is the most recent in a series of investment properties purchased this way.   Agent-owner.

Useful websites about this are: 

www.1031help.com

www.1031university.com

This kind of transaction needs to involve a good real estate attorney, your trusted accountant or financial advisor, and a reliable company that specializes in being intermediary for tax-deferred exchanges.   I can refer you to good resources, and I've used this for our own investments and for clients.  

As with any investment property, it is possible that your real estate investment property might later become a primary residence and the ultimate sale and its taxation would be governed by primary residence regulations rather than investment taxation regulations.   

In any complex transaction, your financial advisor can help you evaluate the positive and negative aspects of your options, and your attorney can help you be sure you follow all the rules exactly.   It isn't as complex as it may seem, and it can be very rewarding financially as well as making your investment property holdings more appropriate for your current needs.