Taxes. A constant reality that we have to deal with. They are
necessary. But one thing I’ve learned, Uncle Sam is not our
Uncle. Therefore, I only want to give Uncle Sam what is rightfully
and lawfully his and keep what I can rightfully and legally keep.
Basically, I’m all about tax avoidance but not tax evasion.
In the world of real estate, many property owners are sitting on a
highly appreciated asset. For many of them, their desire is to
either sell the asset and leverage the current value to attain
another asset that will create more cash flow, or simply put, they
want an exit strategy without having to pay the capital gains and
recapture taxes the following April.
In this article, I’m going to explain some of the primary
differences between a 1031 Exchange and a Tax Deferred Cash
Out. I am not going to go through the tax code. We teach
seminars and webinars on both topics as well as many other
professionals that do the same. There are plenty of opportunities
to learn the tax codes and mechanics associated with the two
strategies. This is based on an assumption that one understands
the code and the mechanics of each.