If you are looking to sell your commercial property with the intention of buying new commercial property, you would do well to not simply buy and sell on the open market. If you do, you are leaving plenty of money on the table and not leveraging the extreme tax advantages which come when you use a 1031 exchange, otherwise known as a s. Here is why you need to utilize this method over all others.
Tax Deferral
When you use a 1031 exchange, you are able to defer plenty of taxes to which you would otherwise be subject. Such taxes as capital gains, income, and depreciation are all able to be deferred when you sell your commercial property through a 1031 plan.
More Cash For Reinvesting
When taxes are able to be deferred, it frees that money up to be reinvested and you will have more money to buy a property with better investment potential than you otherwise would have. This is because if you sold the traditional way, you would have a large amount of taxes associated with that sale. By deferring those taxes with a Starker exchange in Davenport, IA, you keep more of the sale money in your pocket where you are able to use it for investment purposes.
Make Management Easier
If you are burdened with a property that has a high incidence of maintenance issues, you can sell it to an aspiring investor and turn around and purchase a property that is not so saddled with maintenance and upkeep issues.
