Managing Profit Taxes
When property is sold, any profit above your original purchase price is taxed. This means that a portion of your sale proceeds will need to be paid in taxes. If a company or individual wants to sell property in order to buy different property, this limits the amount of money they can reinvest in their new purchase.
Opting to do a 1031 Like-Kind Exchange delays this tax, allowing the entire sale proceeds to be reinvested. This simple process can allow you to put the most money into your investments. An exchange cannot be started after your property has already been sold, so speak with an attorney prior to selling your property.
Reinvest your sale proceeds and avoid Capital Gains Tax