1031 Exchange Arkansas
Arkansas is a delightfully diverse state with loads of opportunities for real estate investors. Be it a home that offers the beauty of nature right outside the window or a cozy bungalow nestled in the heart of a vibrant city; investors can locate any property they are searching for in Arkansas real estate.
One reason the real estate market is promising in Arkansas is because of the state’s strong economy. Arkansas is base to six Fortune 500 companies, including the world’s chief retailer, Walmart. Agriculture also plays a significant role in Arkansas’s economy, ranking 13th in the U.S. in terms of the values of goods sold. Tourism is equally vital since the state is home to scenic beauty, clear lakes, streams, and abundant wildlife.
CNBC recently listed Arkansas the 20th best state for business in the country. Low construction and real estate costs make business start-up and relocation options in the state attractive. Also, the state has the 5th lowest cost of living, 28th best-educated workforce, and 31st-best infrastructure.
Why should I do a 1031 Exchange in Arkansas?
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 1031 Exchange.
What is 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.”
Allow Experts to Manage a Successful 1031 Exchange Arkansas for You
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 – 888-993-2835 or email us at email@example.com