The Benefits of A 1031 Exchange
Besides being able to defer capital gains tax, you have the opportunity to grow and surpass the returns generated from your initial property. Even though you’ll eventually pay taxes on that property, a 1031 Exchange lets you build more wealth than you would have retained had you been required to pay capital return taxes. Therefore, this allows you to compound your overall investment’s value and can give you a much higher return. 1031 investors also experience:
- Stronger returns
- Increased cash flow
- Further portfolio diversification
- Less dependence on volatile assets
- Portfolio insulation
- Additional tax benefits
- And more.