COVID-19 & 1031 Exchange

COVID-19 & 1031 Exchange

By | April 8th, 2020|Blog|0 Comments

COVID-19 & 1031 Exchange

COVID-19 spread has resulted in a complete disruption of regular life and businesses. While most of us are trapped inside for our safety and the safety of others, the financial sector is in a continuous downward spiral. We all are worried about our health and safety, but our financial security is also a big concern.

In the last month, investors have lost millions of dollars in shares, stocks, and bonds as the market continues to tumble. Every investor is looking for stable options to better their financial standing and recover their lost wealth.

In all this chaos, 1031 Exchanges bring a little respite. It is an excellent option to defer capital gains tax and save millions. If you have any non-performing property and you wish to get rid of it, you can end up paying up to 35% of the sale amount towards payment of capital gains tax. However, if you are willing to invest the amount in a like-kind property of better grade and quality, the IRS allows you to defer paying capital gains tax, and you can save a lot.

In the previous housing market crash, the IRS showed leniency in approving 1031 Exchanges as they are great for the real estate sector and also the economy. The only challenge is after you sell your property, you will need to identify a replacement property within a 45-day identification period.

Keeping in mind that the current scenario is set to get worse, it is next to impossible to locate suitable replacement property during this narrow identification period of 45 days. To overcome this challenge, Investors are looking towards DSTs as the best option.

DSTs allow you to buy a beneficial interest in a larger, higher-quality investment property than previously possible. DSTs are prepackaged and can be closed in 3 days that too digitally. You will not need to step out of the safety of your home, and you will also be able to lock your replacement property.

Smart Investors throughout the United States are choosing 1031 Exchanges to defer capital gains tax. If you are in your identification period or looking to start a 1031 Exchange, download our free property list. You can also speak to our experts who are working from home to assist you

“Our tax-deferred 1031 exchange programs can save millions in taxes, increase investor equity, and compound annual cash flow distributions and returns”