The best kept secret of not paying capital gains tax at the time of sale but rather deferring it to later using a 1031 exchange has been consistently used by a few real estate investors.  A 1031 exchange refers to IRS Code Section 1031.  This code permits investors to sell an investment or business property and defer the capital gains tax due on the sale by reinvesting the proceeds into another investment or business property within a specified time frame.  A new property should be identified within 45 days and purchased within 180 days following the sale of the first property.

Even though some investors heard about this benefit but could not apply it easily because of having a problem of finding a "qualified intermediary".  Our firm recently affiliated with such an intermediary which is a reputable company doing the 1031 exchange over 30 years.  The fees for using such an intermediary came down a lot nowadays.  The total fees for completing the 1031 exchange may cost less than $2,000 to $3,000, depending upon the size of deal.

Contact us for more information.