My uncle living in America wanted to sell his real estate because he planned to purchase a bigger house. About the tax issue, he has inquired many experts and got to know that under Internal Revenue Code (IRC) Section 1031, a real property owner can sell his property and then reinvest the proceeds in ownership of like-kind property and defer the capital gains taxes. To qualify as a like-kind exchange, property exchanges must be done in accordance with the rules set forth in the tax code and in the treasury regulations. Since the amount of tax was enormous if my uncle wanted to sell his house to another, he has been hesitant about whether sells it or not. If he does, the money he gets after tax payment will be little. It means he can’t afford a better house.

Then one of my uncle’s friend introduced him a very useful website called 1031exchangealliance.com, which is considered one of the best-kept secrets in the Internal Revenue Code.

The 1031 exchange can offer significant tax advantages to real estate buyers. In a typical transaction, the property owner is taxed on any gain realized from the sale. However, through a Section 1031 Exchange, the tax on the gain is deferred until some future date. But you have to notice that the like-kind exchange under Section 1031 is tax-deferred, not tax-free. So you still have to pay the tax. Even though, it will help many people who are in desperate need to collect money. If you want to know more detail, pls check their website then you can learn a lot about real estate and 1031 tax exchange.

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