DALLAS, TEXAS, November 16, 2016 (Newswire.com) - American Real Estate Investments LLC (AREI), recipient of the 2016 Turnkey Provider of the Year Award at the Think Realty Global Investment Conference in San Francisco, now makes it easy for property owners to upgrade to higher-value properties by facilitating IRC 1031 Exchanges.
Also known as "Starker Exchange" or "Like-Kind Exchange", 1031 Exchanges are still relatively unknown, yet remain an extremely powerful investment tool. A 1031 Exchange allows investors to defer paying any capital gains tax when using profits from the sale of a lower-valued property to purchase a similar turnkey real estate property of equal or greater value.
“A properly managed IRC 1031 exchange allows property investors to greatly increase their investment opportunities,” explains American Real Estate Investments Managing Director John Larson. “Rather than having to turn over tens of thousands of dollars in taxes to the government, if you follow the 1031 exchange rules you can take the profits from the sale of one investment property, and invest it all into another property worth far more than would otherwise be possible.”
Essentially, with the guidance of American Real Estate Investments, you would be able to change the form of your real estate investment without the IRS recognizing it as a capital gain. Therefore, you would be able to grow your investment tax deferred. In addition, there is no limit to how many times you can swap properties using the 1031 Exchange.
As the turnkey properties housing market continues to rebound from the recent recession, Larson went on to explain, many property investors now own cash flow properties that could be sold at a profit. “Take for example someone who bought a rental property in 2008 for $200,000, and could sell it today for $400,000. Without the tax deferment allowed in an IRC 1031 exchange, they would pay about a third of that profit in taxes, leaving less than $100,000 for re-investment in another property. But if they sell their property using the IRC 1031 Exchange option, they can invest the entire $200,000, giving them far more buying power.”
While the rules and regulations for an IRC 1031 Exchange are fairly complex, American Real Estate Investments’ property and investment experts are able to ensure the transaction goes smoothly while teaching you how to invest in real estate. AREI is authorized to serve as a Qualified Intermediary, a requirement of the IRC 1031 Exchange transaction. Perhaps more importantly, AREI maintains a comprehensive, up-to-date inventory of available high-value properties in growing markets, making it easy for investors to identify their next purchase within the exchange’s required 45-day window following the closing of the original property.
“A big part of our mission at American Real Estate Investments,” says Larson, “is to make it easy for Americans to understand and take advantage of the many lucrative US property investment opportunities that exist within real estate. The IRC 1031 Exchange is definitely an option we think more people should be exploring.”
Source: American Real Estate Investments LLC
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