1031 ExchangeYou have decided to upgrade to a new real estate investment or business property, and get a new one. But you really don’t want to have to share the money you have made with the taxman who is going to want to collect his cut. There is a way to avoid that. Thanks to the US Internal Revenue Code’s, section 1031 laws - investors and business owners can indefinitely defer capital gains taxes on the exchange of properties similar to the one that is being sold. Section 1031 exchange allows you to forego the payment of taxes on the sale of your investment property or business property - as long as you use the money from the sale to buy another property of equal or greater value. The Benefits of the 1031 Exchange Law:A) An investor can defer his/her capital gains taxes that they would otherwise have when selling a property.B) The deferral of capital gains taxes keeps the money working for the owner, by encouraging them to buy more investment property. The Section 1031 law does’nt include: Loans, Stocks, Bonds, Partnership Interest, Personal Residences, Certificates of Trust …The good thing is that the 1031 Tax Exchange Law states that you don’t necessarily have to exchange or trade your property for an exact match, in order to avoid from having to pay taxes. You can use the money you make from the sale of your investment-property to “upgrade” to another property of equal or greater value. To qualify for a section 1031 Tax Exchange - be sure of this: A) Compared to the price of your relinquished-property, the new property you are buying must be of equal or greater value. B) The proceeds from the investment property you are relinquishing, absolutely must be used to buy the new property you want. C) Then the replacement property you buy must be what is called, “like kind”. For example if your old property was used for business then the one you are purchasing must be used for the same. Once you’ve made the necessary arrangements,...