1031 Exchanges Manual for Real Estate Agents and Investors: 1031 Tax Deferred Exchanges

By deferring the capital gain and depreciation recapture taxes when an appreciated investment real estate asset is disposed or sold, an investor potentially can retain significantly more money as working capital which can be reinvested in a larger and better performing asset; and at the same time, the investor can gain additional tax advantages, achieve better leveraging, reset depreciation schedule, improve income and cash flow, avoid delayed maintenance, realize larger appreciation, part with undesirable tenants and receive other benefits associated with a more favorable and better performing replacement property. Real estate professionals and investors will greatly benefit from knowing how to perform a detail and accurate exchange financial analysis. Real estate licensees are often deficient in the knowledge and skills necessary to advise their clients of the many 1031 tax-deferred exchange rules, limitations and restrictions; the licensees are also often unaware or ill-informed of many of the 1031 exchange benefits, technicalities and tax consequences. Licensed Realtors are frequently unable to perform a complete and accurate financial investment analysis and fail to advise their clients as to how best to structure and perform a truly beneficial, profitable and advantageous exchange in which the financial numbers make sense and the exchange is in the best interest of the clients. Real estate agents, brokers and investors will learn the common evaluation tools and matrices used in investment property analysis and how to perform a correct and accurate investment property financial analysis as to answer one singular important question: "when should one do a 1031 tax-deferred exchange?” Exchange rules and benefits, tax deferral and exclusion strategies, investment options, financial analysis and tax implications are also discussed in detail in this course. It is the goal of the author of this book to impart the fundamental knowledge and skills necessary for real estate professionals and real estate investors to know when and how to structure and implement a beneficial, successful, and a compliant 1031 tax-deferred exchange. The last chapter of this book contains a summary of 24 distinct 1031 tax-deferred exchange benefits. Real estate agents and brokers, using a correct and accurate financial analysis and the delineated exchange benefits, can unquestionably help their investor clients to achieve better and more profitable real estate investments. The illustrated 1031 exchange benefits when represented in their totality presents incontrovertible and compelling reasons for an investor under certain conditions to act and not just sit on their existing investments in realizing a potentially much better and more profitable return on their investment by effectuating a successful, beneficial and compliant 1031 tax-deferred exchange.