• Appreciating Home Prices – The statistics for Arkansas exhibit an upward drift in home prices. As per the Federal Housing Finance Agency, the state’s house prices increased 1.2% over the first quarter of 2017. Also, over the latest four quarters, house prices went up by 4.2%.
• Low Cost of Living – It can be terrifying to look at the cost of single-family homes and food expenses in the ‘big city’ states like New York and California. That’s not the case with Arkansas. For example, the cost of living in North Little Rock is 58% cheaper than in New York City, 36% economical than in Washington, DC, and 21% inexpensive than in Chicago.
• Job Opportunities – Arkansas has a lot to offer in terms of jobs. As greater Little Rock, northwest and northeast Arkansas proceed to develop, professionals are wanted to fill jobs in a variety of fields, including agriculture and technology. These professionals will want homes, which is a blessing to real estate investors.
• Suburb Trend – We see the beginning of a new shift – first-time home buyers are searching for properties in suburban areas. This might be the best opportunity to invest in a single-family home in the Arizona suburbs.
• Taxes – The cost of living may be cheap in Arkansas, but the state holds 40th rank in the U.S. when it comes to the worst states for taxpayers. However, because you are considering a 1031 Exchange in Arkansas, taxes are not something you need to be worried about.
Let’s also get a better understanding of the The role of Qualified Intermediary (QI) is very crucial role in successful completion of a 1031 Exchange.
A 1031 tax-deferred exchange allows investors to reinvest the profits from the trade of investment property in one or more replacement properties without inviting immediate federal (and most state) capital gains taxes on the appreciated value. When the sale and purchase fulfill the 1031 exchange standards, taxes are delayed until the newly procured property is sold. This deferral strategy can be duplicated through any number of exchanges until the tax liability crosses into the individual’s estate upon death.
If you opt for a 1031 Exchange in Arkansas, you should be aware of the basics. IRC Section 1031 enables an accurately structured exchange allowing any investor to trade property and reinvest the profits in a brand-new property and to put off all capital gain taxes. IRC Section 1031 (a)(1) states:
“No gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment if such real property is exchanged solely for real property of like-kind which is to be held either for productive use in a trade or business or for investment.”
1031 Exchange enables your money to churn the maximum profit for you. However, the process of 1031 exchange in Arkansas is extremely complex in nature, and it would be wise to seek guidance from expert professionals. We have extensive experience in handling highly profitable exchanges for our diverse client base.
For consultation and assistance regarding 1031 Exchange in Arkansas call – 888-993-0590 or email us at info@1031xchange.com
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IRC Section 1031, IRC Section 1033, and IRC Section 721 are complex tax codes; therefore, all the investors/clients/consumers are advised to consult their tax and legal professional for details regarding their situation on any kind of investment. There are material risks every investor should know, associated with investing in 1031 Exchange properties, Delaware Statutory Trust (DST) and any other kind of Real Estate Properties. The risks include tenant vacancies; declining market values; potential loss of entire investment principal; that past performance is not a guarantee of future results; that potential cash flow, potential returns, and potential appreciation are not guaranteed in any way; adverse tax consequences and that real estate is typically an illiquid investment. This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the Confidential Private Placement Memorandum. Please be aware that this material does not replace the PPM.