The Tax-Free Exchange Loophole: How Real Estate Investors Can Profit from the 1031 Exchange

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Overview

Discover the Greatest Investment Tool of All Time!

The tax breaks and loopholes built into real estate make it one of the most profitable investments in the world. In fact, the real estate tax exchange loophole—known as the 1031 Exchange—is one of the greatest tax loopholes in existence. This loophole allows a real estate investor to sell a property without paying a penny in capital gains tax—as long as the investor reinvests his or her profits into another property. Not only is this a great way to invest without paying taxes, it's also a great way to grow real wealth over time. The rules can be confusing, but tax exchange works for every investor, big ...

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Overview

Discover the Greatest Investment Tool of All Time!

The tax breaks and loopholes built into real estate make it one of the most profitable investments in the world. In fact, the real estate tax exchange loophole—known as the 1031 Exchange—is one of the greatest tax loopholes in existence. This loophole allows a real estate investor to sell a property without paying a penny in capital gains tax—as long as the investor reinvests his or her profits into another property. Not only is this a great way to invest without paying taxes, it's also a great way to grow real wealth over time. The rules can be confusing, but tax exchange works for every investor, big or small. This handy guide offers detailed, step-by-step advice on using the 1031 Exchange—and much more:

  • How the capital gains tax works
  • Other little-known real estate loopholes
  • Creative real estate financing techniques
  • Advanced elements of tax-free exchanges
  • Terms and concepts you need to know
  • Eight things that can hold up a closing
  • Transferring debt to other properties
  • How zoning laws affect your investments
  • How tax-free exchanges affect your tax shelter
  • Where to find potential exchanges
  • Twelve creative techniques applied to exchanges
  • Nine booby traps to watch out for in exchanges

Don't wait—use the 1031 Exchange to start building your fortune today!

Product Details

  • ISBN-13: 9780471695783
  • Publisher: Wiley, John & Sons, Incorporated
  • Publication date: 3/25/2005
  • Edition number: 1
  • Pages: 304
  • Sales rank: 637,720
  • Product dimensions: 6.36 (w) x 9.18 (h) x 1.11 (d)

Meet the Author

JACK CUMMINGS is a partner in the Fort Lauderdale–based firm Cummings Realty, Inc., a consulting firm for real estate developers and marketing companies specializing in hotel, time-share, and large project marketing. He is widely published in the field of real estate investing, financing, and marketing, and is the author of the classic Real Estate Finance and Investment Manual.

Table of Contents

Ch. 1 How to use this book to maximize your real estate investment profits 1
Ch. 2 The real estate insider's bag of loopholes 27
Ch. 3 How to put the IRS on your side for a change 57
Ch. 4 The nitty gritty of IRS tax loopholes 77
Ch. 5 How a 1031 exchange will put money into your pocket 93
Ch. 6 Advanced elements of the tax-free exchange 121
Ch. 7 How to make a one-on-one exchange 141
Ch. 8 How real estate exchanges work 163
Ch. 9 Thirteen creative techniques applied to exchanges 185
Ch. 10 Booby traps that await you in exchanges 221
Ch. 11 Closing section 1031 exchanges : the qualified intermediary's point of view 241
Ch. 12 Putting it together for successful transactions 263

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