About the author:

Terry I. Weberman, The Kabinet CPA

Terry is a Certified Public Accountant in the New York Metro area with experience working with businesses and individuals across all backgrounds. He writes articles for the Kabinet blog and is here to help you on your home ownership and/or investing journey. Ask Terry a question by sending an email to info@kabinet.com and put “Terry CPA” in the subject line. This is a complimentary service as part of Kabinet’s commitment to you!

A close up shot of a $100 dollar bill (USA)

Throughout the Internal Revenue Code there are major benefits for real estate investing and homeownership. They are there for everyone, not just Donald Trump and if you use them, they will make your portfolio so much more lucrative.

Today, we will look at what is known as Code Section 1031. The ramifications of this tax law are so great it is hard to describe the incredibleness of the tax $ that are saved by real estate investors through 1031 exchanges.

This benefit allows a real estate investor to purchase a new property to replace their old one, without the paying of any taxes on the profit made. If you don’t see the wonder of this then you are not thinking!

A real estate investor who is staying in the business should almost always use this incredible technique to pay no taxes on their profits. The investor retains the entire sales price to reinvest instead of giving the IRS 20% off the top. Thus, if you had a million dollar profit, you can reinvest the full million as opposed to $ 800,000, is that not mind boggling?

Feel free to contact me for more information, it is gratis.

Note

Terry, The Kabinet CPA, has made every effort to ensure the accuracy of the information within this article was correct at time of publication. He does not assume and hereby disclaims any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from accident, negligence, or any other cause. Speak to your advisor to make sure you qualify for such benefits or opportunities. Do not rely solely on this abbreviated article, it is for informational purposes only.