To New Hampshire real estate investors: 1031 tax exchange allows tax deferred exchange of investment property. Considering to sell your NH house that has been rented out?
If you have a single family rental property, a duplex, an apartment, commercial property or raw land you may qualify for a “tax free” exchange of “like-kind” property. Important: federal and state capital gain taxes on the sale are only deferred and not forgiven.
The 1031 tax deferred exchange allows investors to use all of their proceeds from the sale of real estate in New Hampshire, and to leverage it into more valuable real estate, increase cash flow, diversify into other properties, reduce management or consolidate into one property.
For example single family rental property in Londonderry can be exchanged for raw land in Windham, or apartments in Manchester or a commercial building in Nashua. In addition, your NH real estate can be exchanged for properties anywhere within the US.
Benefits of 1031 exchange to investors in New Hampshire real estate:
ü Leverage: high equity property for highly leveraged property.
ü Diversification: commercial property for industrial apartments.
ü Consolidation: multiple property types for single property type.
ü Cash-flow: non-income producing land for triple-net leased property.
ü Management relief: multiple rental properties for single user commercial investment.
ü Increased depreciation: fully depreciated building for property with a new depreciations schedule.
ü Estate planning: one large building for properties designated for each heir.
The real power of a tax deferred exchange is not just the tax savings - it is the tremendous increase in your purchasing power generated by this tax savings! With the advantages of leverage, every dollar saved in taxes allows you, the real estate investor, to purchase two to three times more real estate.
Is your current real estate investment giving you everything you want out of your real estate investment?
It may be time to explore the 1031 exchange: the alternative without a tax bite.