There is actually a
section of the IRS that’s called a 1031 exchange. It’s related to real estate.
Let’s say you have a piece
of real estate that you’d like to sell for whatever reason. Assume you invested $50,000 and at the sale
you received $100,000. That gain of
$50,000 would be taxed at capital gains rate.
However, if you exchanged
it for like property (some real estate), you would avoid the tax on the
gain. Sometimes people sell the real
estate to get out of the hassles of managing such property. You can exchange your property for commercial
property and avoid any the management issues because the other “partners” do
that for you.
In addition, there are
other features to keep in mind. First,
there is no debt on the newly acquired property. It’s called a REIT, Real Estate Investment
Trust. Furthermore, these properties are leased to well-known companies such as
Jared Jewelry, Petsmart. They all carry
long-term leases. Lastly, they are
diversified across many rapidly growing, prospering sections of the country.
That is the plan in a
brief overview. Call or email me for a
Summary prospectus. It could be
something to help your taxes and diversify your investments.